This is a corporate purchaser who discovers companies, which will create more profit by liquidating the parts rather than through business operations. For example an asset stripper could purchase a battery company for $100 million, strip and sell the R&D division for $30 million, then sell the remaining company for $85 million, for a profit of $15 million. The asset stripper could also just sell a portion of the business to fulfill debt obtained from acquiring the company.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
asset-stripper — asset stripping ˈasset ˌstripping verb [uncountable] FINANCE the practice of buying a company whose shares are worth less than its assets, then selling its assets in order to make a quick profit: • The new owners turned out to be more interested… … Financial and business terms
asset stripper — A CORPORATE RAIDER who buys a company intending to sell all or most of the company’s prized assets to pay off the debt incurred in purchasing the company. An asset stripper calculates that the remaining parts of the company will be valuable … American business jargon
asset-stripper — assˈet stripper noun • • • Main Entry: ↑asset … Useful english dictionary
asset stripper — A corporate raider ( company A) that takes over a target company (company B) in order to sell large assets of company B to repay debt. Company A calculates that the net, selling off the assets and paying off the debt, will leave the raider with… … Financial and business terms
asset stripper — / æset ˌstrɪpə/ noun a person who buys a company to sell its assets … Dictionary of banking and finance
asset-stripping — ˈasset ˌstripping verb [uncountable] FINANCE the practice of buying a company whose shares are worth less than its assets, then selling its assets in order to make a quick profit: • The new owners turned out to be more interested in asset… … Financial and business terms
asset stripping — The acquisition or takeover of a company whose shares are valued below their asset value, and the subsequent sale of the company s most valuable assets. Having identified a suitable company, an entrepreneur would acquire a controlling interest in … Accounting dictionary
asset-stripping — noun the practice of taking over a company in financial difficulties and selling each of its assets at a profit. Derivatives asset stripper noun … English new terms dictionary
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