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 ?
The fears over asset stripping came as former AstraZeneca head Sir David Barnes warned Pfizer could "suck the lifeblood" out of the UK company.
331155882288 oorr eemmaaiill hhiimm sstteevveebbaaggnnaallll@@ "The accusation is that we are asset stripping.
Rumours of possible purchase by a financial institution can only create the fear that this will be driven by asset stripping for short term financial gain rather than to retain the skills of the workforce and longer term manufacture of products key to maintaining Britain's manufacturing future.
Everyone needs help in these hard economic times, not a form of personal asset stripping for no worthwhile purpose.
A separate inquiry into private equity funds will also take place, amid concern over asset stripping.
They have made their fortune from the private equity business - asset stripping by any other name.
Labour is braced for controversy this week when it discloses receiving major donations from three financiers amid the row over corporate asset stripping.
Be truthful to us - you are asset stripping," he said.
Labour must show faith with its electorate by ruling out this asset stripping exercise that will degrade the environment for the citizens of North Cardiff.
VINCE Cable yesterday threatened to change the law to stop US drugs giant Pfizer from asset stripping the UK's AstraZeneca in a PS63billion takeover.
THE Labour Party is braced for controversy this week when it discloses receiving major donations from three financiers amid the row over corporate asset stripping.
Mike Gladstone, chairman of the Lanchester Partnership ( a group supported by the parish council, village organisations and local people ( said: "We must act now to prevent the county council from asset stripping and selling off the site to a developer.