Definition of asset stripping in English English dictionary
This occurs where a company is purchased because the market price of its shares is less than the value of its assets Assets are then sold and a profit is realised
The practice of taking over a company, splitting it into parts and selling them for a profit
the practice of buying a company cheaply and then selling all the things it owns to make a quick profit - used to show disapproval
When an undervalued company is acquired, its assets can be sold off to make more money than it took to acquire the company in the first place
A process by which a controlling shareholder sells off the assets of a company and pays the proceeds to the shareholders (often himself) Alternatively, the cash proceeds are retained within the remaining shell of the original company to be used for a variety of purposes
buying a company in order to sell the assets separately at a total price greater than what you paid for the business
disapproval If a person or company is involved in asset-stripping, they buy companies cheaply, sell off their assets to make a profit, and then close the companies down