In an era marked by rapid technological change and heightened market competition, companies are increasingly reevaluating their portfolios to sharpen strategic focus. At the forefront of this shift are divestiture advisory services which guide firms through the complex process of selling or spinning off non‑core assets. But can these services actually improve a firm’s strategic focus by as much as 21 percent post‑divestment? This article examines emerging 2025‑2026 figures, quantifies the impact of strategic divestitures, and explores why advisory support may be indispensable in helping organisations refocus, optimise performance, and unlock shareholder value.
The Rise of Divestiture Activity in 2025 and 2026
Corporate divestitures have surged in recent years as companies embrace focused growth strategies rather than broad conglomerate structures. By the end of 2025, global asset sales and divestments were on track to exceed US$1 trillion across nearly 7 000 deals, the highest level since 2021. This wave of activity reflects pressure from activist investors and a broader market shift toward portfolio optimisation rather than broad diversification.
In the US, divestiture transaction volume grew steadily through 2025, accounting for roughly 25.9 percent of total M&A activity in Q3 2025, an increase compared to earlier periods in 2025. Moreover, larger deals those above US$1 billion made up nearly 36 percent of divestiture activity in that quarter, a notable shift toward strategic repositioning among larger corporations.
Amid these trends, the global divestiture advisory market was valued at approximately US$4.9 billion in 2025 and expected to grow at a compound annual growth rate of about 14.5 percent through 2033. This growth underscores the increasing reliance on specialist advisory firms to navigate regulatory complexities, optimise transaction outcomes, and accelerate post‑divestment transformations.
What Is Divestiture Advisory and Why It Matters
At its core, divestiture advisory services help companies assess which assets to divest, develop value creation strategies, structure transactions, engage potential buyers, and manage post‑transaction separation issues. This specialist support is critical because divestment is not just about selling assets; it is about reshaping a company’s portfolio to better align with strategic priorities and long‑term goals.
According to industry surveys and market data, significant portions of divestiture value are lost when separation planning is inadequate or poorly executed. Persistent hurdles such as stranded costs, transition service agreement complexities, and regulatory delays can erode value if not addressed proactively during the advisory process.
For example, advanced divestiture advisory can unlock incremental value of £5 million to £20 million or more on mid‑market transactions through detailed operational analysis, improved buyer engagement strategy, and pre‑sale optimisation. This illustrates how advisory expertise can translate into measurable outcomes that go far beyond simple deal closure.
Strategic Focus: The Real Outcome of Successful Divestiture
One of the key benefits touted by proponents of divestiture is the improvement of strategic focus. By shedding non‑core or underperforming assets, organisations can redirect management attention, capital, and talent toward their core growth drivers. But what does the quantitative evidence say?
While direct studies quantifying a precise 21 percent improvement in strategic focus are limited in public reports, the link between divestitures and enhanced organisational outcomes is well documented:
- Organisations that align their divestiture decisions with core strategic objectives and implement structured separation planning are more likely to realise post‑transaction gains in focus and performance.
- PwC analysis shows that proactive portfolio management through divestiture leads to greater total shareholder returns and stronger future performance compared to companies that retain non‑core assets.
- According to industry research, companies that embrace strategic divestment are significantly more likely to refocus resources on high‑growth business units and improve key performance metrics relative to peers who lag in portfolio optimization. Industry surveys have observed that planned, strategy‑led divestitures increasingly replace reactive asset sales.
Furthermore, firms that treat divestitures as transformation events, rather than isolated transactions, embed value creation early in the process, often resulting in a clearer operational focus post‑divestment and better alignment with long‑term strategic priorities.
How Divestiture Advisory Contributes to Strategic Refocus
To understand the potential for strategic focus improvements, it helps to break down how divestiture advisory services deliver transformation:
1. Clarity in Strategic Alignment
Advisors begin by assessing the company’s portfolio through a strategic lens. Leveraging deep market insights and benchmarking data, they help clients distinguish between core and non‑core assets. This clarifies where to invest for future growth and where to unlock capital, setting the stage for a more focused organisational structure.
2. Enhanced Decision Making
Through predictive analytics and scenario planning, advisory specialists enable leadership teams to evaluate potential divestiture outcomes. This reduces uncertainty and supports better decision making. Companies with strong preparation and data support tend to experience smoother transitions and stronger performance post‑divestment.
3. Execution Discipline
Advisors bring disciplined project management to divestiture processes, helping mitigate execution risk. This focus on operational milestones, compliance, and stakeholder communication ensures that the company’s core business continues to operate efficiently during separation.
4. Post‑Transaction Realignment
After a sale or spin‑off, advisory teams often support separation execution, workforce alignment, and system realignment. This ensures that the remaining organisation (sometimes referred to as RemainCo) is optimally structured to pursue strategic priorities without unnecessary overhead.
Together, these elements contribute to the kind of organisational clarity that allows firms to better focus on their core missions, improve operational efficiency and, ultimately, increase strategic impact.
Future Outlook: 2026 and Beyond
Looking ahead to 2026, divestiture advisory is expected to become even more integrated into corporate strategy. The shift from reactive disposals to strategy‑led, value‑focused separations signals that companies see divestiture not just as a transactional event, but as a transformational lever for long‑term success.
Given that advisory‑led deals increasingly dominate the divestiture landscape, firms that integrate this support early in the strategic planning cycle are better positioned to capture value and sharpen their competitive edge. The emphasis on execution excellence and post‑transaction integration is likely to grow as companies compete for capital efficiency and focused growth.
In conclusion, divestiture advisory services play a fundamental role in enabling organisations to sharpen their strategic focus after divesting non‑core assets. While quantifying exact percentages like a 21 percent improvement in strategic focus may vary by industry and specific circumstances, the broader evidence points clearly to the fact that well‑executed divestitures are strongly associated with improved organisational clarity, better capital allocation, and stronger performance post‑transaction.
As divestiture activity continues to grow in 2025 and 2026, advisory support remains a critical differentiator for companies seeking not only to transact effectively but to transform their strategic outlook for sustainable growth. Whether a corporation is divesting to unlock shareholder value or refocusing to compete more effectively, expert guidance ensures the journey from portfolio assessment to post‑divestiture success is both disciplined and strategically aligned. Divestiture advisory services will continue to be a cornerstone of strategic transformation in the evolving global business landscape.
Finance Advisory 