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. Profit Center

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

    A financial benefit that is realized when the amount of revenue ...
  5. Sum-Of-Parts Valuation

    Valuing a company by determining what its divisions would be ...
  6. Subsidiary

    A company whose voting stock is more than 50% controlled by another ...
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. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center