Unlike business bankruptcy and business failure, divestiture is often undertaken for positive motives in a manner that is consistent with the firm's strategic goals.

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Divestiture is the process of selling off or disposing of a subsidiary, division, or business unit. It is often done to get rid of underperforming or non-core assets, streamline operations, or focus on core competencies. In contrast to business bankruptcy and failure, which are usually the result of financial distress, divestiture is a proactive strategy undertaken with a positive motive to improve the firm's financial performance, competitiveness, and long-term sustainability.

Unlike Business Bankruptcy and Business Failure, Divestiture Is Often Undertaken