Glossary · Doing the deal
Divestitures
In short
Divestitures are when a company sells off an asset, a subsidiary, or a portion of its business. For buyers, it means you're acquiring a carve-out of a larger entity, not the whole company.
What it means in a deal
When buying a divested asset, ensure clear separation of assets and liabilities from the parent company. You need to verify that all necessary operational components are included in your Asset purchase and that the seller isn't offloading problems. Thorough Due diligence is critical here.
Related terms
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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