Asset stripping refers to
A)acquiring shares in a firm and then causing the firm to repurchase the shares at a premium to prevent a takeover.
B)financing provided by a securities firm to help support an acquisition.
C)investing in the shares of a firm that is expected to experience a leveraged buyout (LBO).
D)selling off individual divisions of an acquired firm that are not compatible with the acquirer's business.

Question

Quizplus · Accepted Answer

Asset stripping involves the process of acquiring a company and then selling off its assets for profit, often without regard for the long-term health or viability of the original company. This can include selling off divisions or parts of the business that do not align with the acquirer's strategic goals.

Asset Stripping Refers to