Corporate divestiture, understood as the disposal of significant shares of operational business units, leading to adjustment of the ownership and business portfolio structure, is a potentially value-adding strategic option for corporations (cf. Gell/Roos 2008, p.22-26; Dranikoff/Koller/Schneider 2002; Müller-Stewens/Schäfer/Szeless 2001, p.13-18). Divestitures have proven to be of major relevance in business practice, regardless of the firms’ scope, size, age and industry (cf. Hoskisson/Johnson 1992, p.625-633). They have been included among the key features of a “third industrial revolution” (Jensen 1993, p.835ff.) due to their ubiquity and potentially high impact. Dedicated, systematic divestiture management is crucial, and expected to gain ever greater importance (cf. Cools/Roos/Stelter 2004; Anslinger/Jenk/Chanmugam 2003).
KeywordsPrivate Equity Parent Company Business Unit Portfolio Management Diversify Firm
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