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Possible benefits of business divestitures

On Behalf of | Aug 31, 2022 | Comprehensive Business Law

It might not be uncommon for companies to possess a multitude of assets, some of which may play an integral role in everyday operations. However, certain types of assets might not have the same impact on the well-being of a New York business and sometimes selling assets may be the best available path to safeguarding company interests. Knowing some of the possible benefits of transactions such as business divestitures could help companies better prepare to make informed choices about their options. 

What divestitures might offer 

There are a variety of scenarios in which companies might consider it preferable to sell certain business assets. For example, companies in pursuit of growth may expand operations to include new products and services and if these items do not perform as intended, selling the assets might help mitigate loss. The same path may also apply to expansions to new locations that fail to prove fruitful and closing the location and selling a property may also help safeguard company interests. 

In some cases, the motivating force behind the decision to divest assets may simply come from a desire to resolve cash flow concerns. Selling assets may also prove the preferable path should the time come when a company chooses to close its doors. Companies that face dire financial woes may also find it helpful to consider their options for divestitures when preparing to seek relief from debts via outlets such as bankruptcy. 

Preparing to divest 

While divesting business assets can prove beneficial in various scenarios, knowing when and how best to approach a similar process might not always be a simple task. Fortunately, companies in New York do not have to face this alone, as there are attorneys that can evaluate the situation and provide much-needed advice on all the available options. An attorney can help a client in creating a strategy that best aligns with the company’s needs and assist in preparing to navigate the subsequent process. 


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