Question

Do you think the fact that an acquisition was later divested means that it was a failure? Why or why not

Answer 1

Acquisition was later divested means that it was failure - Yes

1. Company does divestment to hide there non profitable division or loss making segmemt.

2. Poor performance can also be reason for divestment.

Acquisition was later divested means that it was a failure - No

1. There may be the case where division is fetching really good prices.

2. Sale of division was triggered because of regualtor opinion. Example Procter and gamble had to sell its crest spinbrush in order to win union approval to buy Gillette.