Divestiture is the process of selling off a subsidiary, business unit, or asset by a company. This can occur for various reasons, such as to raise capital, streamline operations, or comply with regulatory requirements. Companies may choose to divest to focus on their core business or improve overall financial performance. In some cases, divestiture can also be a strategic move to enhance shareholder value. For example, a company like General Electric may divest non-core segments to concentrate on its primary industries. This allows the company to allocate resources more effectively and potentially increase profitability.