Divestitures are becoming a critical part of a balanced M&A strategy for consumer products companies, yet many struggle with timing and execution. Over the past two years, divestitures accounted for a large share of total deal value, reflecting strong buyer demand and few capital constraints. Companies that proactively and regularly divest tend to create the most value, while delaying action often leads to erosion in noncore businesses due to lack of focus and investment. Carve‑outs are especially timely, as buyers can bring new advantages to underperforming brands. Successful divestitures require overcoming challenges such as stranded costs, tax implications, earnings dilution, valuation issues, and functional complexity.

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