breakup value

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Breakup value

Breakup Value

The value of a division in a company if that division were its own independent company. Companies considering taking over another use the breakup value, among other metrics, to determine whether a takeover is worth the time and expense. It is also called the private market value.

breakup value

The market value of all the individual parts of a firm if the firm were to be broken up and the individual parts operated independently. If the breakup value of a firm exceeds the market value at which its stock trades, the firm may be managed and operated inefficiently. In such a case, stockholder holdings would increase in value if parts of the firm were divested. Many takeovers originate when raiders spot firms with breakup values that exceed the prices at which those firms' stocks are traded.
References in periodicals archive ?
When a sellers scans book ISBNs, the Bookseller app provides real-time buyback offers from reputable online vendors, as well as the book's private market values, so that sellers know how much they can expect to earn by selling their used books on sites such as Craigslist and Ebay.
Private market values for luxury hotel properties far exceed public market valuations;
Furthermore, the investment manager's outlook states that the likely degree of decline in private market values is more than fully reflected in the pricing of REIT stocks today.
And all this should also convince market participants that private market values are well higher than public trading prices, and that private market players can be and are much more aggressive.
At the same time, outside investors, ranging from opportunity funds to private real estate developers, see opportunity in the gap between the Wall Street valuations for REITs and the private market values of the assets held by REITs.
Future earnings are modelled, with private market values estimated through ratio analysis.
said, "Our investment team is especially honored by this S&P AAA rating, which again underscores our research driven Private Market Value with a Catalyst [TM] approach to 'stock picking'.
The Fund is subject to the risk that the portfolio securities' private market values may never be realized by the market, or that the portfolio securities' prices decline.
Bennett, President and CEO, commented, "We believe there is a clear disparity between public and private market values.
The Gabelli Value Fund invests in a concentrated portfolio of securities of companies which are selling below their private market values.
Their bottom-up proprietary research helps them identify misunderstood and mispriced companies that offer strong products or services, or that appear to sell at a significant discount to their private market values.
These transactions will clearly establish Citizens as a pure telecommunications company, focusing its ongoing expansion on a business sector that commands higher public and private market values.

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