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asset stripping

1 of 1noun
/ˈæ.sɛt strɪ.pɪng/
1

the act of buying a company and then selling its assets separately, often at a profit, without regard for the company's long-term viability

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  • The company engaged in asset stripping, selling off its valuable properties and intellectual assets to generate short-term profits.
  • Asset stripping can result in long-term damage to a company's viability and reputation, as it erodes its fundamental value.
  • Shareholders accused the management of engaging in asset stripping to enrich themselves at the expense of the company's long-term sustainability.
  • Asset stripping is often associated with corporate raiders who acquire companies solely to dismantle them and sell off their assets for a quick profit.
  • Regulators have implemented measures to prevent asset stripping and protect the interests of shareholders and other stakeholders.