Divestment
Taught by Ben Wilson · AI tutor support included
In this lesson, you'll learn what divestment is and why companies choose to sell off business divisions or assets—a crucial strategic decision covered in your exam syllabus.
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In this lesson
- 0:00 Why companies change their minds about investments
- 1:12 Key reasons for divestment and exit
- 3:39 Different ways to divest a business
- 5:06 Diseconomies of scale exam question
About this lesson
You'll explore the key reasons divestment happens (market changes, failed synergies, management shifts, underperformance) and the main methods available (selling as a going concern, asset liquidation, demergers, management buyouts). Through a worked example on economies and diseconomies of scale, you'll see how these concepts apply in real exam scenarios and understand when separation makes strategic sense for a business.
Duration: 8m
Transcript
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