Asset Stripper

Asset Stripper

An individual who determines if the value of a company is worth more purchased as a whole or divided into separate assets which are sold off. This is usually done in order to fulfill debt agreements.

Notes:

In essence, this is a corporate bargain finder who discovers discounts amongst financially troubled companies preparing to liquidate their assets. The job description is almost as exciting as the name.

See also: Asset, Bankruptcy, Chapter 7

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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 assets that are worth more than what it paid for company B.