A business that is rich in high-growth opportunities may be an excellent candidate for divestiture to a strategic buyer with significant cash resources and limited growth opportunities.

Question

Quizplus · Accepted Answer

A business rich in high-growth opportunities but potentially lacking in the necessary capital or strategic focus can benefit significantly from divestiture to a strategic buyer. Such a buyer, especially one with significant cash resources and limited growth opportunities within their current operations, can provide the necessary investment and strategic alignment to capitalize on the growth potential of the acquired business, making it an excellent candidate for divestiture.

A Business That Is Rich in High-Growth Opportunities May Be