Asset stripper


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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.

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.
References in periodicals archive ?
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.
Some people think I'm an asset stripper, but if the club went under there would be nothing for me.
Selling the club in good faith and then discovering the person who has bought the place is an asset stripper who leaves St Mirren in all sorts of debt isn't the way forward.
Mr Revell accused the company of acting as if it was a private equity asset stripper and said it was "richly ironic" that such a long-established British company was turning its back on Britain.
Unite national officer Brian Revell said that the firm was acting like a "private equity asset stripper.
But Brian Revell, of the union Unite, accused them of acting like a "private equity asset stripper.
National officer Brian Revell said the firm was acting like a "private equity asset stripper.
Everything has been sold by the asset stripper except the ground but, mark my words, Tynecastle will be next.
They took all the best bits, asset stripped it and then sold it to another asset stripper.
He was not in the factory as an asset stripper as the T&G suspected.
Asked if he was just an asset stripper, keen to sell off the land and machinery at Longbridge, Mr Moulton replied: 'The benefit of any sale of land will be a long time coming and it may even fall to the next owner of Longbridge.