单词 | asset stripping |
释义 | asset stripping The acquisition or takeover of a company whose shares are valued below their asset value, and the subsequent sale of the company's assets. Having identified a suitable company, an entrepreneur would acquire a controlling interest in it by buying its shares on the stock exchange; after revaluation, properties or other assets held could be sold for cash, which would be distributed to shareholders (now including the entrepreneur). Subsequently, the entrepreneur could either revitalize the management of the company and later sell off the acquired shareholding at a profit or, in some cases, close the business down. Because the asset stripper is totally heedless of the welfare of the other shareholders, the employees, the suppliers, or creditors of the stripped company, the practice is highly deprecated. |
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