Reasons for divestitures vary. A unit may be sold off, spun off, or split up because it is performing poorly and the seller wants to stem its tide of losses.

Conversely, it may be sold as a crown jewel because it can fetch a good price.

Finally, and least appealingly, it may be tagged for sale to appease regulators—for example, the Antitrust Division of the Department of Justice or the European Union—which may set this as a condition for regulatory approval of a merger.