A divestiture is the sale of a business or an asset to another company. The financial modeling process is essentially the same for a divestiture as it is for an acquisition – a pro forma model needs to be made that shows the accretion/dilution of key per share metrics and the impact on valuation per share. To learn more, check out CFI’s M&A modeling course.
CFI is the official global provider of financial modeling and valuation analyst FMVA Designation. CFI's mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way. In order to become a great financial analyst, below are some additional questions and answers for you to explore further:
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