{"id":4662,"date":"2017-03-30T13:30:15","date_gmt":"2017-03-30T18:30:15","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/closing-a-business\/what-is-divestiture.html"},"modified":"2024-05-23T00:58:07","modified_gmt":"2024-05-23T05:58:07","slug":"what-is-divestiture","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/closing-a-business\/what-is-divestiture.html","title":{"rendered":"What Is Divestiture?"},"content":{"rendered":"\n
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What Is Divestiture?<\/h1>\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Aviana Cooper, Esq.<\/a>\n | Last updated\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Small business owners sometimes find themselves with a cash-flow problem. Their business is going well, but it needs a money infusion to stay that way. Maybe a venture that seemed promising ends up being less so. Whatever the case, the balance sheet isn’t adding up, and you need a new business strategy.<\/p>\r\n

In the business world, divestiture<\/a> means selling off assets. This strategy can improve a company’s value, increase its profile, or obtain more money. Small businesses<\/a> may divest as part of a Chapter 13 restructuring. This article reviews some of the types of divestiture and the advantages and disadvantages of doing so.<\/p>\r\n

Divestiture Definitions<\/h2>\r\n

Divestiture occurs for many reasons and has many forms. In general, it involves selling, closing, or redistributing business assets. Not all apply to small businesses, but a small business may result from a larger company divesting its assets.<\/p>\r\n