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Journal of Management Research and Analysis


Appropriate timing of divestitures: An empirical investigation


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Author Details: Rama Krishna Mishra

Volume : 3

Issue : 4

Online ISSN : 2394-2770

Print ISSN : 2394-2762

Article First Page : 181

Article End Page : 183


Abstract

This paper is an attempt to study how firms recognize the appropriate timing of divesting a segment of its business? What factors influence such decision? What are the motives for divestitures? In these paper divestitures as an overall activity is discussed without taking its various forms such as spin-off, liquidations, equity carve-out in detail. The thrust is put to study “Is there any perfect timing for separating a business unit; irrespective of the mode of disinvestment which unlocks value or simply managers go by their irrational desire to divest one or more business units?”. Since the survey of select literature provide a very few and mixed views, the paper relies on several reports published by well-known consultancies in this field to make the study. It is an attempt to test divestitures theories with the real world practices.

Keywords:
Divestiture, Timing, Spin-off, Liquidation, Value

Doi No:-10.18231