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The asset stripper is an individual or company which buys the corporation for the purpose of division, sales and make profits, i.e. subsequently sells the assets. By defining a suitable company, the entrepreneur (asset stripper) buys up the stock exchange its shares for as long as it receives a majority, after the revaluation of assets acquired company it can to implement all or part of the cash to be distributed among the shareholders (the number of which now includes himself). It can then either update the management of the company and later profitably sell its stake or in some cases, liquidate the company. As the entrepreneur is ignoring the interests of other shareholders, staff, suppliers and lenders to free up the assets of the company, the practice is now encountering sharp condemnation.
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