What is the Benefits of divestment
¸ Releases cash tied up to finance more promising opportunities.
¸ Reduces diversification and complexity of a group in case of a demerger.
¸ could improve financial results for example by sale of a division or product that under achieves.
¸ Exit route for investor's for example MBO/MBI.
¸ Enables management to focus on core competences.
¸ Make the organisation leaner and more cost efficient 'adding value' to shareholders, stronger financial performance also can avoid a low share price making the organisation less prone to takeover by predator companies.