July 21, 2021
How divestments can re-energize the technology growth story
Technology sector market capitalization has recently outpaced revenue growth, as the sector experienced record-breaking valuations and multiple expansion. The race to show continued revenue growth is now on. Divesting may be an option for companies to capture the benefits of outsized valuations while also reinvesting capital to drive future growth. Strategic divestments can be a valuable tool in technology companies’ portfolio management and boosting future growth. An EY article provides details.