What are divestiture studies?
- Content Type:
- Glossary
Divestiture Studies Definition
Research to determine if it is a good business strategy for a company to sell off a business unit in order to focus resources on a more profitable or promising market.
Divestiture studies are the analysis and examination of a company that could sell off, or divest, a portion of its business, assets or subsidiaries. In other words, it’s research to determine whether it makes sense for a company to sell off a business unit in order to focus resources on a more profitable or promising market. Part of this research is to assess the impact of such divestitures on the company's market positioning, financial performance and overall brand perception. The process sheds light on the potential benefits and risks associated with divestiture actions. The analysis can provide lessons for other businesses considering similar strategic moves, as well as offer insights into how market perceptions and financial outcomes can be impacted by such a move.
Who relies on divestiture studies?
Businesses, corporate strategists, market analysts and investors look to divestiture studies for insights into the outcomes and implications of a possible sale on the company's competitiveness, market share and shareholder value.
Why should I care about divestiture studies?
Divestiture studies provide a comprehensive view of potential strategic divestitures on a company's performance and market dynamics. Insights from these studies can be used to make decisions about investments, partnerships and market strategies.