Corporate Divestitures: A Synthesis

IE code:
DE2-115-I
Language:   English
Format:  
PDF
Nr. Of Pages:
13
Academic Area:
Type of publication:
Technical Note

Description

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.