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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.


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Maurice Morrow MLA added: "While we witness asset stripping taking place, we are not assured that the revenue accrued from the sale of those assets will be invested back into the area by putting more officers back on the beat.
We're dyed-in-the-wool fans who believe Murray is asset stripping Rangers into obscurity.
The SEIU, which represents service industry workers, has targeted buyout firm Kohlberg Kravis Roberts, which it has accused of asset stripping and loading companies and destabilising them with large amounts of debt.
 
 
 
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