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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.
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.