After a target firm is acquired, the acquirer may sell off divisions of the target that are not compatible with the acquirer's business. This process is known as
A)bridging.
B)asset stripping.
C)greenmail.
D)None of these are correct.

Question

Quizplus · Accepted Answer

Asset stripping refers to the process where the acquirer sells off parts of the acquired company that are not essential or compatible with its core business. This is often done to streamline operations or to raise capital.

After a Target Firm Is Acquired, the Acquirer May Sell