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 ?
Some people think I'm an asset stripper, but if the club went under there would be nothing for me.
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.
It was a going concern, he was knighted for his services to retail and he turns out to be a sort of asset stripper.
Gilmour's worry is that St Mirren's relatively glowing state of health attracts an unscrupulous asset stripper who buys the club for all the wrong reasons.
National officer Brian Revell said 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.
Everything has been sold by the asset stripper except the ground but, mark my words, Tynecastle will be next.
Unite national officer Brian Revell said that the firm was acting like a "private equity asset stripper.
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.
But Melrose, branded asset strippers by critics, claim they can make investors more money.