Whats the difference? (1 Viewer)

[LaZy_KoReAn]

I was looking at my notes

And i'm mixed up with corporate raiders and asset stripping

Corporate Raiders: Borrow funds to buy under performing companies (do they sell it?)

Asset Stripping: Buying companies to sell at market value, assets undervalued on balance sheet

Da hell?

 

[chris42]

Yeah, Corporate raders buy under performing companies in order to sell their undervalued assets which is known as asset stripping. Thats how they link together

 

[sneaky pete]

corporate raider - ppl that try take over a company by buying shares and using proxies to gain majority ownership, also the people that purchase other companies and engage in asset stripping

asset stripping - buying a badly performing company for cheap and selling off its assets 1 by 1

 

[LaZy_KoReAn]

Originally posted by chris42
Yeah, Corporate raders buy under performing companies in order to sell their undervalued assets which is known as asset stripping. Thats how they link together

So it virtually means the same thing rite?


Ahh don't worry i got it now

 

[chris42]

Exactly.. think of it this way, Corporate Raiders are the people, Asset stripping is the process.

 

[LaZy_KoReAn]

Originally posted by chris42
Exactly.. think of it this way, Corporate Raiders are the people, Asset stripping is the process.

yerp yerp