Corporate Divestitures: A Synthesis

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Language:   English
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Technical Note


It is important to understand the strategic and organizational reasoning and consequences of divestitures in order to understand whether divestitures are merely a reflection of the economic cycle, a means to correct or reverse previous strategic decisions (for example, diversification), or a proactive strategic option. The objective of this Technical Note is to clarify the definitions of restructuring, divestiture, and divestment; and to provide an overview of existing knowledge on divestitures, from a financial, strategic, and organizational perspective.