divestiture

Vocabulary Word

Definition
'Divestiture' is a fancy way of saying 'selling or getting rid of.' Imagine a company deciding to sell off parts of their business that aren't doing well. That's divestiture.
Examples in Different Contexts
In M&A activities, 'divestiture' is a key strategy. A CEO might say, 'To streamline our operations, we're considering the divestiture of our retail division.'
Practice Scenarios
Marketing

Scenario:

We want to build a solid reputation as the leading brand in skincare. All of our resources should reflect this priority.

Response:

Divestiture of our cosmetics line might indeed allow us to focus on improving the skincare line.

Accounting

Scenario:

We are reviewing our inventory with the goal of increasing company profitability next quarter.

Response:

By considering divestiture of assets that are not proving profitable, we could create a positive impact on our financial statement.

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