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A divestiture is a seller-initiated sale or disposal of a business, subsidiary or significant asset — usually by a corporate or a fund pruning a portfolio — rather than a founder selling the whole company they built.
A founder business sale disposes of the whole story. A divestiture is what a group does when a unit is non-core, antitrust-required, or capital is better used elsewhere. Invest Europe uses divestment for PE realisations generally; corporates use divestiture for the same idea.
Accounting: IFRS 5 may put the unit in held-for-sale / discontinued operations — a signal to the market that the process is real.
Illustration only.
A listed chemicals group announces disposal of its coatings division (divestiture). The division shares a SAP instance, a plant, and a treasury. The deal cannot close until a carve-out TSA (transition services) is priced. PE bids assume €4m of stranded costs. The corporate’s “divestiture multiple” on allocated EBITDA is not the multiple a buyer will pay on carved-out EBITDA.
Divestiture success is perimeter honesty. Allocated overhead that does not leave with the unit inflates seller EBITDA and becomes the first QoE fight.
Portfolio strategy; merger remedies; PE sale of one asset in a fund.
Stigma (“non-core”) can taint the process. Employees hear the announcement before buyers do. Tax on the disposal can dominate headline EV.
Dazur treats a divestiture file as a first-class company: its own P&L, WC, and TSA map. Parent allocations that cannot be evidenced do not belong in the valuation.