Mergers and acquisitions are on the rise, and many of these deals involve divestitures. For some firms, divestitures provide a way to raise cash and to deleverage. For others, divestitures can realign portfolios. Regardless of the reason for divesting, transactions can go terribly wrong for companies that don’t plan carefully or pick the right exit route. This concise article from Jens Kengelback, Alexander Roos and Georg Keienburg of the Boston Consulting Group provides keen insights into divestment strategies, investor reactions, and the potential pros and cons for companies. getAbstract recommends it to senior executives charged with planning and crafting divestitures.
About the Authors
Jens Kengelback, Alexander Roos and Georg Keienburg work at various German branches of the Boston Consulting Group.