Editing Divestment (section)

=== Divestment for financial goals ===

Often the term 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 be more profitable, or promising. Sometimes, such an action can be a [[Corporate spin-off|spin-off]]. In the United States, divestment of certain parts of a company can occur when required by the [[Federal Trade Commission]] before a merger with another firm is approved. A company can divest assets to wholly owned subsidiaries.

It is a process of selling an asset. 
The largest corporate divestiture in history was the 1984 [[U.S. Department of Justice]]-mandated [[breakup of the Bell System]] into [[Old AT&T|AT&T]] and the seven [[Baby Bell]]s.

Of the 1000 largest global companies, those that are actively involved in both acquiring and divesting create as much as 1.5 to 4.7 percentage points higher shareholder returns than those primarily focused on acquisitions.<ref>{{cite web|last1=O’Connell|first1=Sean|last2=Park|first2=Michael|last3=Thomsen|first3=Jannick|title=Divestitures: How to Invest for Success |publisher=Transaction Advisors|issn=2329-9134|url=https://www.transactionadvisors.com/insights/divestitures-how-invest-success}}</ref>