Can someone explain me the concept of Asset-Stripping?
Swapnil Jain
(Finance - FP&A)
(564 Points)
Replied 15 October 2011
Asset stripping is buying a company, and then selling off bought businesses separately. Source-Money Terms
Consider the Value of a comapny being 1 Cr. However if one feels that the assets held by the company can be sold for 1.5cr, then he takeover the co. and sell the assets in parts. This is known as asset stripping. To learn more you can watch the film WALLSTREET!! Its worth a go and full of learning as well!1
Greatbear
(NA)
(64 Points)
Replied 17 October 2011
Thanks Swapnil.
Your explanation is crisp and clear. Will surely watch the film soon after the exams!!!
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