Bust-up takeover

A leveraged buyout in which the buyer sells off the assets of the target company to repay the debt that financed the takeover.

Busted Takeover

An acquisition of one company by another in which the acquiring company finances the purchase with debt and then sells various assets of the target company in order to repay the debt. A busted takeover is most advantageous when the acquiring company is cash poor and the target company has a surplus of undervalued assets.

bust-up takeover

The acquisition of a firm in which the acquiring company sells certain assets or segments of the target firm in order to raise funds and repay the acquisition debt. Such a takeover is most often undertaken when the target firm has a significant amount of undervalued assets and the acquiring company has little cash.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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