Funding growth-Asset stripping

Asset Stripping for Funding Growth

Monetizing Company Assets

Definition:

Asset stripping refers to a strategic business practice where a company is acquired primarily for the value of its tangible assets, rather than for the value of its ongoing operations or business as a whole. In asset stripping, the focus is on acquiring the company to subsequently sell off its assets to generate profit.

Profit-Oriented

Asset stripping is a profit-oriented strategy where a business acquires another company, not for its long-term operational potential, but to exploit the value of its assets.

Asset Sale for Profit

Following the acquisition, the new owner systematically sells off the acquired company's assets, such as real estate, equipment, intellectual property, or inventory, to generate a financial gain.

In summary, asset stripping is a strategic business approach in which a company is acquired primarily for the value of its assets, which are then sold individually to generate profit. This practice focuses on immediate financial gains rather than the continued operation of the acquired business as a going concern.