asset acquisition


A buyout strategy in which key assets of the target company are purchased, rather than its shares. This is particularly popular in the case of bankrupt companies, who might otherwise have valuable assets which could be of use to other companies, but whose financing situation makes the company unattractive for buyers (an asset acquisition strategy may be pursued in almost any case where the potential target company has an unattractive financing structure). Further, the asset acquisition strategy might be pursued if the acquirer is interested in certain specific assets, and not all the possible target assets.

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After the declining company lost its appeal to investors, competitors' asset acquisition was the only strategy that it could use to remain profitable.

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In order for Fred to maximize the diversity of his investments he embraced a strategy of asset acquisition that did not emphasize the purchase of the company's shares.

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