Profitably parting ways: Getting more value from divestitures

Companies often struggle to capture the full value of a separation. Here's how to do better.

Most divestitures start with a strategic decision that a company is no longer the best owner of one of its businesses. It's a natural move for executives who see value in actively managing their portfolio of business units- recognizing that to grow, they sometimes have to shrink first - to deploy capital into a business with higher returns, for example, or to reshape the company's strategy. Indeed, past McKinsey research has shown that companies that more frequently re-allocate capital generate higher returns than their peers ... READ MORE

Released by McKinsey & Company - February 2013