Stripping Profits

Stripping profits refers to the practice of breaking down a business's assets or components to sell them separately, rather than as a whole. This can maximize the financial return by capitalizing on individual asset values, such as real estate, equipment, or intellectual property. It’s often done when a business is underperforming or when owners want to exit the market. While it may generate immediate cash, it can also lead to the loss of the business's operational integrity and long-term value. Overall, it’s a strategic decision based on assessing which approach will yield the best financial outcome.