Barak Ravid writes for CFO.com
Divestment of non-core units is an effective way to streamline the business and free up capital to support growth.
EY-Parthenon Managing Director, Co-head of Technology Barak Ravid’s CFO.com article, “Why technology companies should consider divestments,” highlights that despite unprecedented technology industry divestment activity last year, many companies in the technology sector still aren’t fully benefiting from using divestitures as part of a broad strategy to position themselves better for coming disruptions.
He notes that many large technology firms are several decades old, and have reached a point where they need to be more proactive in trimming and reinvigorating their portfolio, which often includes aging assets that cannot easily be adjusted to innovations. Tech companies that continue to serially acquire without engaging in healthy portfolio pruning will be less prepared to lead as a wave of disruptive forces reshapes the technology sector — again.