asset stripping

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Asset Stripping

A form of corporate raiding in which a company acquires a target company and then sells some of its assets, usually to repay its (the corporate raider's) debt. Often this debt is the debt incurred in the process of taking over the target company. The corporate raider conducts asset stripping because he believes that selling some of the assets will both repay the debt and leave the raider with enough extra assets to increase its net worth. In the process of deciding which companies to acquire, asset strippers look for companies worth more as individual assets than as companies.

asset stripping

The sale of selected assets of an acquired company generally for the purpose of raising money to pay off some of the debt incurred in financing the acquisition.
References in periodicals archive ?
Gilmour said: "We don't want any asset strippers but if it's to the club's advantage to be sold into foreign hands and used as a feeder team then I would go along with that.
Based on a report published on the Tribune's web site that Zell is "favored" to take over the company, Martin told directors in a Sunday letter that handing Zell control "would be the death knell of American journalism," Monday's news conference will expand on Martin's strategy to block any sale of the Tribune organization to asset strippers.
Those bidders that might have been seen as asset strippers with an eye on the property values of the greyhound sites seem to have been frightened off by the valuation of the GRA with estimates of the likely sale price being between the pounds 45 million and pounds 50 million mark.
He has ordered that under no account must they sell the yards to asset strippers Alchemy who would break them up.
This is the same all over again with asset strippers lining their pockets and shutting down our club.
THE picture (in national newspapers) of chancellor George Osborne when he was a member of the infamous Bullingdon Club in 1992 (right) along with news that asset strippers and "predatory" financiers provide more than a quarter of the Conservative party funding proves this country has returned to the days of "Downton Abbey" when the class system and poverty of the masses was rife.
But he insisted he was not being anti-business, but in favour of the wealth-creators rather than the predators and asset strippers.
What Teesside does not want is for the company to fall into the hands of asset strippers.
Call me nave, but I happen to believe asset strippers are a far more worthy target than referees, bureaucrats or even conniving hacks.
And the neighbouring Mara reserve is going bust, which causes complications for Leopard's Den as asset strippers start removing the game on which the lions depend for food, so they in turn attack a mother elephant who exhausts herself trying to defend her calf.
And although "private equity" is seen by the unions as shorthand for asset strippers, Halewood's standing within Ford for quality and efficiency stands comparison with any plant in the car industry.
It stands in jeopardy of falling to local asset strippers and California ego trippers.