Preface

Abstract

While mergers and acquisitions (M&A) is a general term that refers to the consolidation of companies or assets, it also encompasses divestitures, which most commonly result from a management decision to cease operating a business unit because it is not part of a core competency. A divestiture, in its simplest form, is the disposition or sale of an asset by a company. Divestitures are a way for a company to manage its portfolio of assets. As companies grow, they may find that they are trying to focus on too many lines of business, and they must close some units to focus on more profitable lines.