Asset Redeployment

AAA

DEFINITION of 'Asset Redeployment'

The strategic relocation of assets from a less valued, or less profitable, use to a higher valued, or more profitable, use. Asset redeployment takes idle, or underutilized, capital and changes how it is employed in order to increase return on investment (ROI), or profitability. Utilizing a proper asset redeployment strategy would allow a firm to achieve better results for the same cost.

INVESTOPEDIA EXPLAINS 'Asset Redeployment'

When the asset is a good, such as equipment or machinery, redeployment can be a money-saving alternative to buying a brand new replacement good. An alternative to asset redeployment is an asset sale (called "asset disposal"). The proceeds from the sale increase the company's cash balance. Assets that a company needs to be redeployed or sold are called "surplus assets."

RELATED TERMS
  1. Takeover

    A corporate action where an acquiring company makes a bid for ...
  2. Asset Rationalization

    Reorganizing a firm's assets in order to improve operating efficiencies ...
  3. Spinoff

    The creation of an independent company through the sale or distribution ...
  4. Asset

    1. A resource with economic value that an individual, corporation ...
  5. Profit Center

    A branch or division of a company that is accounted for on a ...
  6. Profit

    A financial benefit that is realized when the amount of revenue ...
Related Articles
  1. How To Calculate A Z-Score
    Markets

    How To Calculate A Z-Score

  2. 3 Deadlines For Retirement Plan Beneficiaries
    Retirement

    3 Deadlines For Retirement Plan Beneficiaries

  3. Retirement Plan Tax Form 8606: When ...
    Taxes

    Retirement Plan Tax Form 8606: When ...

  4. Asset Allocation In A Bond Portfolio
    Bonds & Fixed Income

    Asset Allocation In A Bond Portfolio

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center