Asset stripping

Generally, the attempt by the acquirer of a company to break down the company in parts and sell those to third parties, hoping that the sum of the parts will at the end of the process be greater than the price they initially paid for the overall company. – A – usually distressed – company is taken over; and the new owner – often a Vulture Fund – tries to pay off the accumulated debts by selling off individual parts. In many cases, however, cannibalization is the only way to bring the remaining part of the company back into profit (undertaking profitable again). – See Burn-Out Turnaround, Event-Driven Fund, Factoring, Fairness Opinion, Hedge Fund Loans, Locusts, Insolvency Costs, Capital Tapping, Leveraged Buy-out, Private Equity Funds, Recapitalization, Restructuring, Window on Technology.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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