A characterization of an asset or set of assets implying the extent to which these assets have alternative uses or ways of deployment (in addition to their initially intended use at the time of procurement). In relation to sectors or industries, redeployability implies usability of assets within and across industries. It also refers to the salability of the capital assets of an entity- that is, the extent to which capital assets of an entity can be re-used at reasonable costs.

In a certain context, asset redeployability describes how easily corporate assets can be sold on secondary markets or liquidated at reasonable prices (i.e., with ease of finding potential buyers and with a minimal impact on the sale price).

Greater asset redeployability produces certain liquidity benefits that potentially improve an entity’s financial stability, specifically in terms of mitigating future crash risk (i.e., the risk associated with severe drops in an entity’s stock price). However, asset redeployability can allow managers to exploit asset sales to engage in upward real earnings management in order to masquerade bad news and management mistakes (in turn, potentially driving up future stock crash risk).

Redeployability of assets can be determined using certain factors including mainly the number of businesses and industries that employ a particular asset. The more businesses and sectors do so, the more redeployable an asset is, and vice versa. An entity holding a certain asset runs a risk reflected in the salability of the asset across industries. A non-redeployable asset poses a great amount of risk embodied in potential additional costs for securing alternatives and certain maintenance expenses to to existing, non-redeployable assets.