What are some types of divestitures?
♥ 0 |
What are some types of divestitures? |

Explanation
The four types of divestitures are as follows:
Sale of assets to another company- Here, an entire division or unit of a company is sold for cash or shares.
Liquidation- Here, the assets of a division are sold individually rather than being sold as a whole.
Spin-off- In a spin-off, the divested division forms a new entity and the existing shareholders are given new stock in the new entity.
Equity carve-out: The parent company gains new equity financing by selling a minority interest to new shareholders and yet retaining control over the subsidiary.
Verified Answer
Following are the types of divestitures:
Sale of assets to another company
Liquidation
Spin off
Equity carve out
Looking for the solution to this or another homework question?
If you need essay writing assistance or homework solutions, log in or sign up for a free account and ask our writers any homework question.