Must-read Wharton Faculty Authors: How to Create Value for a Business by Divesting | Emilie Feldman
Episode Description
EPISODE OVERVIEW Wharton management professor Emilie Feldman takes a deep dive into divestitures, explaining why it’s a viable and often overlooked strategy for companies to build shareholder value.
Topics and questions covered: 00:00 - Introductions 1:41 - Discussing Prof. Feldman’s Book 4:16 - What is a divestiture? 7:15 - Analyzing the pros and cons of spin-offs 10:27 - Analyzing divestiture strategies 13:26 - Have regulatory changes increased divestitures? 18:22 - Divestitures in segments vs. full-scale 19:41 - Takeaways
PODCAST OVERVIEW Every day, business scholars answer pressing questions in their research — but what do their insights mean for you? In this podcast, Wharton faculty dive into what inspired their studies and how their findings resonate with the world today. Learn how research insights translate into knowledge you can use, with host Dan Loney.
Learn more at http://whr.tn/rippleeffect.
#divest #divestment #mergersandacquisitions ----- The Wharton School of the University of Pennsylvania is committed to sharing its intellectual capital through Knowledge at Wharton, the school’s online business analysis journal.
Launched in 1999, Knowledge at Wharton offers free access to:
- Articles, podcasts, and videos highlighting Wharton faculty research and analysis of current business trends - Interviews with book authors from Wharton School Press - In-depth series of curated content like Wharton Executive Education’s Nano Tools for Leaders - A searchable database of more than 10,000 articles covering all aspects of business - A weekly newsletter that delivers Knowledge at Wharton insights directly to your inbox
Visit the Knowledge at Wharton homepage: https://whr.tn/3qUpSBE Subscribe to the Knowledge at Wharton YouTube channel: https://whr.tn/3DEAgAU
Brief Summary
Emily Feldman discusses the strategic value of divestitures and misconceptions surrounding them in corporate settings.
Key points
- Understanding Divestitures. Divestitures are often misunderstood as failures, but they can be strategic opportunities.
- The Common Types of Divestitures. Sales account for 95% of divestiture activities, with spin-offs being the second most common.
- The Importance of Focus. Companies often divest to improve corporate focus and performance, as seen with GE.
- Managing Shared Resources. Disentangling shared resources is a critical pitfall in the divestiture process.
- The Power of Divestitures. Divestitures can create more value for companies than mergers and acquisitions.
Ask about Knowledge at Wharton
Episode highlights
- Understanding DivestituresDivestitures are often misunderstood as failures, but they can be strategic opportunities.“Divestitures provide real strategic opportunities for companies.”4:10Aug 10, 2023
- The Common Types of DivestituresSales account for 95% of divestiture activities, with spin-offs being the second most common.“By far the most common way that companies will divest is to sell something.”5:26Aug 10, 2023
- The Importance of FocusCompanies often divest to improve corporate focus and performance, as seen with GE.“Divesting is to improve corporate Focus.”11:43Aug 10, 2023
- Managing Shared ResourcesDisentangling shared resources is a critical pitfall in the divestiture process.“The devil is in the details of managing implementation.”15:36Aug 10, 2023
- The Power of DivestituresDivestitures can create more value for companies than mergers and acquisitions.“Divestitures need to enter the conversation as much as mergers.”20:16Aug 10, 2023
