Monday, August 13, 2018
An Introduction to Divestiture
Paul Liska has held leadership roles at companies such as Motorola, Speciality Foods Corporation, and Kraft General Foods. In these roles, he became familiar with a wide range of business functions. Paul Liska has spent the past several years working as a private investor in Illinois.
The opposite of investing, divesting is getting rid of an asset by exchanging, selling, or closing it. In most cases, divesting of a business unit is done because the unit is not part of the company’s core competency.
To refocus the business, management may decide to get rid of certain units through divestiture. In doing so, they reduce the lines of business a company must manage.
If a business is struggling financially, it may choose to sell business units to bring in money and return the company’s focus to its primary business line. Divestiture may also be part of a business’ survival plan after a bankruptcy.
Labels:
Divestiture,
Paul Liska
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