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 ?
It was based on the attempt of the banks to take over the company that the financial and telecommunications regulators have moved in to intervene and forestall down-sizing and asset stripping
Gauzes says Parliament also made its mark on asset stripping, remuneration and depositaries, the agencies that hold assets for safe-keeping.
"This is a bit like asset stripping. Everyone is worried what he will sell off next."
Over a number of years during takeovers of retailers, business and conglomerate asset stripping has become very popular and my guess is that has to be considered as part of the equation.
VINCE Cable yesterday threatened to change the law to stop US drugs giant Pfizer asset stripping Astra-Zeneca in a PS63billion takeover.
Lost revenue (asset stripping) due to using Sports Direct in any advertising space in the stadium and not paying for it.
Stranglehold is nothing new THE SNP controlled Scottish Government is asset stripping Aberdeen to the tune of PS13m.
One reason must be the failure of her Government to counter short termism and asset stripping by the City of London that have restricted access to finance for many businesses over the years.
They all should be put on a protected list to stop Yorkshire Water and future water boards from asset stripping the valuable stone and replacing them with cheaper alternatives.
The head of the Anglican Church in Wales use of words like "conscripts not volunteers" and "asset stripping of organs" which upset and angered many patients and families across Wales.
And he insisted this was not an exercise in asset stripping, but a business plan to take the stadium, Wrexham FC and the Crusaders rugby league club forward.
The remaining issues for Parliament are asset stripping - the practice where private equity firms swoop in on ailing companies only to dismantle them and sell them off at a profit - and passive marketing - where investors contact managers rather than the other way around.