The reasons for selecting a divestiture, carve-out, or spin-off strategy are basically the same.

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Divestiture, carve-out, and spin-off strategies are chosen based on different strategic, financial, and operational considerations. For example, a company might choose a divestiture to quickly exit a non-core business and raise capital, a carve-out to unlock the value of a subsidiary while retaining a controlling interest, and a spin-off to create a separate entity that might perform better as an independent company, potentially providing strategic focus and operational efficiency to both the parent and the newly independent entity.

The Reasons for Selecting a Divestiture, Carve-Out, or Spin-Off Strategy