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Divestment |

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| This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition. |
DivestmentDivestment is the reduction of an asset held by a company. Often divesment is used as a means to grow financially in which a company sells off a business unit in order to focus their resources on a market it judges to have more growth or profit potential. Sometimes, divestment is used to create a spin-off, in which one division of the original company becomes an indepedent firm or a subsidiary of the parent company.
Spin-outs occur when the equity owners of the parent company receive equity stakes in the newly spun out company.



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