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. Sum-Of-Parts Valuation

    Valuing a company by determining what its divisions would be ...
  4. Profit

    A financial benefit that is realized when the amount of revenue ...
  5. Asset

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

    A branch or division of a company that is accounted for on a ...
Related Articles
  1. Markets

    How To Calculate A Z-Score

    Investors need to know how to detect signs of looming bankruptcy. The Z-score can help.
  2. Retirement

    3 Deadlines For Retirement Plan Beneficiaries

    To take full advantage of new RMD regulations, beneficiaries need to take action before important deadlines.
  3. Taxes

    Retirement Plan Tax Form 8606: When To File

    If you have a Roth IRA, you are responsible for keeping track of your pretax versus after-tax assets.
  4. Bonds & Fixed Income

    Asset Allocation In A Bond Portfolio

    An investor's fixed-income portfolio can easily beat the average bond fund. Learn how and why!
  5. Investing

    How To Evaluate Pension Risk By Analyzing Annual Costs

    Learn how to assess whether a company's pension plan is posing more risks than what the footnotes indicate.
  6. Economics

    What is Value Added?

    Value added is used to describe instances where a firm takes a product and adds a feature that gives customers a greater sense of value.
  7. Economics

    What is a Wholly Owned Subsidiary?

    A company whose common stock is 100% owned by another company, called the parent company.
  8. Economics

    What is the Breakeven Point?

    In general, when gains or revenue earned equals the money spent to earn the gains or revenue, you’ve hit the breakeven point.
  9. Investing

    What's a Run Rate?

    Run rate is a term used to denote annualized earnings extrapolated from a shorter time frame. Management uses the run rate to estimate future revenues.
  10. Professionals

    Financial Accounting

    Financial accounting is the process of gathering, recording, summarizing and reporting financial data relating to a business. The ultimate goal is to accurately report the financial picture and ...

You May Also Like

Hot Definitions
  1. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  2. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  3. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  4. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  5. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  6. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
Trading Center