Asset Acquisition Strategy


DEFINITION of 'Asset Acquisition Strategy'

The purchase of a company by buying its assets instead of its stock. An asset acquisition strategy may be used for a takeover or buyout if the target is bankrupt. Market knowledge, research and experience are important to a successful asset acquisition strategy. In some cases, a plan for selling the asset, called asset disposition, is built into the asset acquisition strategy.

BREAKING DOWN 'Asset Acquisition Strategy'

Bankruptcy proceedings represent an opportunity for a company to implement an asset acquisition strategy. By taking advantage of one company's distressed position, another company can purchase assets like equipment and machinery for its own business at reduced prices. The SEC requires public companies to report asset acquisitions and dispositions on form 8-K within four days of the transaction because these are considered "material events" that shareholders should know about.

  1. Acquisition

    A corporate action in which a company buys most, if not all, ...
  2. Divestiture

    The disposal of a business unit through sale, exchange, closure, ...
  3. Acquisition Adjustment

    The difference between the price an acquiring company pays to ...
  4. Acquisition Financing

    The capital that is obtained for the purpose of buying another ...
  5. Disposition

    Getting rid of an asset or security through a direct sale or ...
  6. Encumbrance

    A claim against a property by a party that is not the owner. ...
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