Asset Redeployment

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.

BREAKING DOWN '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."