Definition: In finance, a divestiture is a sale of a company's assets to an investor or other entity in exchange for cash. This can be done through a public offering, where the stock is sold publicly on a stock exchange; by issuing new shares of the company; or by selling the company outright. Divestitures are common in the context of mergers and acquisitions (M&A) transactions, as they allow companies to sell off assets without having to go through the regulatory process for an acquisition