Bust-up Takeover

This topic contains 1 reply, has 2 voices, and was last updated by  Silman Ondrej Dia 1 year, 1 month ago.

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    A takeover in which an acquisition is followed by the sale of certain, or even all, of the assets of the target company. Should the sale of the assets be given priority
    to the previous board of directors? Without going to the process of tender from various parties. Due to public relations gimmick we tend to give to the previous owners of board of directors.

    #93964

    Silman Ondrej Dia
    Participant

    Hi there,

    As I understand a bust-up takeover is basically a leverage-buyout in which the buyer sells of target’s assets to pay of the debt used to finance the acquisition. Since the buyer has not strategic interest in the intended assets for sale, I believe there would be more interest in selling the given asset(s) as high as possible in order to repay the debt. A tender would therefore be more appropriate and should be given priority, unless the deal is pending upon a specific agreement to sale those assets to the previous board.

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