Divestiture Transaction
Definition
Transaction type that occurs when a non-core business unit or asset is sold to a new owner.
Comments
Divestitures can include the sale of a standalone subsidiary, product line, or other company-owned assets.
Divestitures are most common amongst large public companies with multiple business units. General Electric for example is known to divest 10 to 20 businesses each year.Referring Terms
Transitional service agreement (TSA), Standalone EBITDA, Operating partnersFor profiles of 1,400+ private equity firms, including portfolio and professional info, please consider a free 30-day trial membership.
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