refers to divestiture, spin-off, or some other means of eliminating businesses that areunrelated to…

➤ Why do companies use divestitures or spin-offs when downscoping?
Companies divest or spin off units to unlock shareholder value, eliminate distractions, and reallocate capital to higher-return projects. These transactions can improve performance metrics, reduce complexity, and allow separate management teams to pursue tailored strategies. They also address regulatory issues or free cash for core investments and acquisitions.