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 securities firms 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 refers to the practice of selling off individual divisions of an acquired firm that are not compatible with the acquirer's business. This is often done to maximize the value of the firm and generate a quick return on investment.

Asset Stripping Refers to