MBA & Master Glossary

Divestiture

Definition

A divestiture is the separation or sale of a business unit, for example as a spin-off, carve-out or sale to an investor. The aim is usually to focus the core business or release capital. Success depends heavily on execution: transition services, clear decision rights in the new entity and the right sequencing determine whether the expected value is actually realised.

Example: "The group financed its digitalisation through the divestiture of a peripheral division."

Why this matters for your MBA

"Divestiture" is one of the terms you will come across when comparing MBA and Executive MBA programmes in Germany, Austria and Switzerland — in admission requirements, accreditation details or programme descriptions. On mba.de you can check how individual business schools handle it and compare programmes independently.

Source: mba.de – independent comparison portal since 2003.

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