Explore commonly used personal finance terms.
Asset stripping is a strategy where a company or investor purchases a business with the intent of selling off its valuable assets individually for profit, often resulting in the company’s downsizing or closure. This approach is typically seen in distressed acquisitions, where the value of the company’s parts exceeds its operational worth. While asset stripping can lead to financial gain, it may have negative impacts on employees, communities, and long-term viability. Asset stripping is often controversial and is generally associated with opportunistic takeovers.
