Divestiture is the sale or disposal of a company's assets, divisions, or subsidiaries, often to focus on core businesses or raise capital.

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Why is divestiture important?

Divestiture is important because it allows companies to streamline operations, focus on core competencies, raise capital, and improve overall financial performance and competitiveness.

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An easy way to understand divestiture is:

When a company sells off a part of its business or assets, like a division or subsidiary, to focus on its core operations or raise money for other purposes.

Divestiture Types & Examples

Divestiture types include spin-offs (creating a new independent company), split-offs (exchanging subsidiary shares for parent company shares), and carve-outs (selling a portion of a subsidiary to the public).

Examples: eBay spinning off PayPal in 2015, or General Electric divesting its appliances business to Haier in 2016.

Strategically divesting non-core assets allowed us to focus on our core competencies in aesthetic treatments. This focus streamlined operations, improved efficiencies, and enhanced client experiences, directly translating into increased client loyalty and revenue growth.