Divestiture Strategy - Letting Go of Employees and Entire Company Units

We’ve spoken about letting employees go after a merger. What about letting entire company units go by selling them? How often does this happen?

It depends on how long a timeline for divestiture you are considering. Few companies divest units immediately following an acquisition (unless they are compelled by antitrust regulators to do so), but many companies divest them eventually.

This process is very hard to trace over a significant period of time, since companies and their units are always undergoing restructuring and renaming.

Companies generally review their businesses and alignment to their overall corporate strategy, which itself changes over time, and identify those businesses or teams that no longer fit the strategy and are subject to divestment.