Companies often purchase other firms with the intent of selling off some units eventually, holding this divestiture option open until the businesses in question develop further or until the industry consolidates to the point that it becomes a seller’s market.

Assigning a quantitative value to each divestiture option may seem coldhearted, as the divestiture decision can bring disruptive change into the lives of people and communities—not always for the better. Yet, as in any decision, it is valuable to engage the head as well as the heart. If a divestiture is in the cards, it will happen sooner or later; the humane acquirer won’t avoid it, but rather will bring it about in a human fashion, in accordance with the responsibilities discussed earlier in this chapter.

A purely mathematical approach, while incomplete in and of itself, can help acquirers make the decision of keeping versus selling. It can also help set an appropriate price for the purchased company. The option to divest has quantifiable value and can be calculated easily (see Valuing the Divestiture Option).

Whether an acquirer keeps all the assets of a company or divests some of them, some responsibilities do remain ethically and legally, and these must be carefully weighed. Corporate social responsibility benefits all stakeholders, including shareholders, over time.