asset redeployment

Asset Redeployment

The strategic relocation of company assets in order to increase profitability.

Notes:

By redeploying assets, a company is restructuring itself in order to become more efficient and profitable. Typically, successful takeover bids will result in redeployment.

For example, the sale or dissolution of an unprofitable subsidiary in order to focus on more profitable areas of the business.

See also: Asset, Profit, Profit Center, Spinoff, Subsidiary, Sum of Parts Valuation, Takeover

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asset redeployment

The reallocation of underused assets in an attempt to make a firm more profitable. To effect an asset redeployment, a company might sell a relatively unprofitable subsidiary and use the funds to strengthen another part of its business. Many corporate takeover attempts are based on the premise that assets will be redeployed once the acquisition has been completed.