How To Define Divestment?

A simple definition of Divestment is: Acquisition is the process of selling a subsidiary, property or departmental asset to maximize the value of a company. Also known as divestment, diving is actually the opposite of investment and is usually done when the subsidiary or division does not meet expectations.

  • A sale is when a company sells all of its assets or all of its subsidiaries.
  • Although most acquisition decisions are deliberate attempts to streamline operations, forced sale of assets can be the result of legal or regulatory action, such as legal bankruptcy.
  • The sale can take the form of a spin-off, sale of shares or direct sale of assets.

Synonyms of Divestment

divesture , privation , dispossession , disinvestment