- *assets in an organization. Asset stripping often occurs following an *acquisition (definition 2), when an acquirer believes that the breakup of a purchased organization’s assets can enhance their overall value. This may be the case when the value of a corporation’s *common stock has fallen below the value of its separate, tangible assets. Less commonly, the term asset stripping may also be a tactical (or even malicious) means of avoiding a corporate takeover. An organization that is the target of an unwelcome *acquisition bid, for example, may take the extreme measure of depleting its assets to make it less attractive to a potential acquirer. See also *poison pill.
Auditor's dictionary. 2014.
Look at other dictionaries:
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