What is Asset Stripping?

Legal Definition
Asset stripping is a practice in which a company or an individual, known as a corporate raider, takes control of another company, and then auctions off the acquired company's assets. Funds from the sold assets are often used to repay the debt of the corporate raider, which may have increased due to the acquisition. Corporate raiders use asset stripping to repay debts while increasing their net worth. A company that may become susceptible to asset stripping is any company whose individual assets are worth more than its collective net worth.

The term is generally used in a pejorative sense as such activity is not considered productive to the economy. Asset stripping is considered to be a problem in economies such as Russia or China that are making a transition to the market. In these situations, managers of a state-owned company have been known to sell the assets they control, leaving behind nothing but debts to the state.
-- Wikipedia
Legal Definition
When a buyer of a company sells off the assets right away to gain back the cost paid for the business.