Divestment is a powerful tool for B2B leaders looking to release capital and refocus their business for future growth. In a fast-changing market, holding on to non-core assets can tie up resources and distract from your main goals. A well-planned divestment strategy helps you free up cash, sharpen your focus, and invest in areas with the highest potential.
This blog outlines a practical approach to divestment, drawing on White Space Strategy’s experience and real-world examples. We explain each step, highlight key considerations and show how businesses have used divestment to drive growth.
1. Identify Non-Core Units
The first step in any divestment strategy is to identify which parts of your business are non-core. These are units or assets that no longer fit your long-term vision or deliver the returns you need.
This process could align with a wider strategy piece. What direction is the business heading? What trends are emerging and what influences will they have on your existing assets and what you need internally going forward?
It could also be the case that a part of your business is moving in a direction that doesn’t align with the rest of your organisation; perhaps it needs significant investment, or to move nimbly, away from a corporate structure, or to attract a new type of customer which may be challenging for your business to engage.
Questions to ask:
- Does this unit align with our core strategy?
- Is it underperforming compared to the rest of the business?
- Could another owner create more value from this asset?
2. Assess Capital Release and Buyer Interest
Once you have identified potential divestment candidates, estimate how much capital you could release. This involves understanding buyer interest, likely sale price, and the costs involved in the divestment process.
Be realistic about potential sale value and consider the possible negative implications of a withdrawal. What fixed costs will this business unit now no longer share?
What you’d like to sell may not be attractive enough to the market so you may need to consider parts of the core business to make the package more interesting. What would you be prepared to give up?
Key considerations:
- Who are the likely buyers? (e.g., competitors, private equity, strategic investors)
- What is the realistic valuation?
- What are the transaction and separation costs?
3. Define Your Objectives for Released Capital
Before you proceed, be clear about what you want to achieve with the capital you release. This will help you set expectations and measure success. It will also help identify what you need to achieve in the sale and therefore what / how much you need to sell.
For public companies, having a good story around divestment is important, but it’s also important if you need to sell this within a private company – there can be some sensitivities to consider about assets which have been acquired in the past, or may have been part of the original business.
Consider:
- Will you reinvest in core business areas?
- Are you planning acquisitions or new product launches?
- Will you return capital to shareholders?
4. Evaluate Wider Business Impacts
Divestment can have far-reaching effects beyond the immediate financials. It is important to consider impacts on operations, customers, employees, compliance and the wider market.
You may need to consider how this will affect your supply relationships, or if it will change what services you can offer to customers. Might suppliers or customers look to switch their whole business as a consequence?
Areas to review:
- Upstream and downstream impacts (e.g., supply chain, shared services)
- Effects on customer relationships and contracts
- Talent retention and morale
- Legal, regulatory, and compliance risks
5. Plan and Execute the Divestment Process
A successful divestment requires careful planning and execution. This includes preparing the business for sale, managing communications, and ensuring a smooth transition.
Steps to follow:
- Develop a clear project plan and timeline
- Prepare detailed information for buyers (e.g., financials, operations)
- Communicate openly with stakeholders (employees, customers, suppliers)
- Plan for post-sale transition and support
Key Points to Remember
- Start by identifying non-core units that do not fit your long-term strategy.
- Assess the capital you can release and the level of buyer interest.
- Set clear objectives for how you will use the released capital.
- Consider the wider impacts on your business, from operations to people.
- Plan and execute the divestment process carefully to maximise value and minimise disruption.
Divestment is not just about selling assets—it is about refocusing your business and setting the stage for future growth.
If you need support with any aspect of divestment strategy, White Space Strategy is here to help. We have worked with large FMCG companies, global paper and packaging businesses and FS firms to inform decisions about divestment and capital allocation.
Get in touch to discuss how we can support your next move.
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Divestment Strategy: How to Release Capital and Refocus for Growth
