Enterprising families prefer to maintain family ownership, preserve socioemotional wealth, and exhibit a distinct family and organizational culture. However, when intra-family succession fails, family firms often consider divestments a last resort. Due to these unique characteristics, family firm divestments follow a distinct pattern. Nevertheless, the extensive family firm divestment literature remains fragmented and lacks a holistic overview. This study systematically reviews the literature on family firm divestments across the entire process and its individual phases. In our literature review, we identify, analyze, and structure 125 relevant articles that were published in peer-reviewed journals between 1990 and 2024. We identify key factors, characteristics, and dynamics shaping the process and develop a family firm divestment framework. Based on our analysis, we contribute to family firm and divestment research by consolidating knowledge and outlining several promising avenues for future research.
