{"ok":true,"canonical_url":"https://dealroom.so/glossary/divestitures","api_url":"https://dealroom.so/api/public/glossary/divestitures","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"divestitures","term":"Divestitures","group":"Doing the deal","definition":"Divestitures are when a company sells off an asset, a subsidiary, or a portion of its business. For buyers, it means you're acquiring a carve-out of a larger entity, not the whole company.","what_it_means":"When buying a divested asset, ensure clear separation of assets and liabilities from the parent company. You need to verify that all necessary operational components are included in your Asset purchase and that the seller isn't offloading problems. Thorough Due diligence is critical here.","url":"https://dealroom.so/glossary/divestitures","official_sources":[],"related":[{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"}],"related_questions":[]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Divestitures","url":"https://dealroom.so/glossary/divestitures","source_type":"DealRoom Data"}}