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bust-up takeover

bust-up takeover

9.9
New owners sell a company's parts to pay the debt they used to buy it
  • noun
  • Archaic
translation icon : compra apalancada
  • After the bust-up takeover, the company had to sell off its assets quickly to repay the debt from the acquisition.

Examples

  • After the bust-up takeover, the new owners quickly liquidated valuable assets to cover the acquisition costs.

  • The company faced a bust-up takeover that led to the sale of most of its divisions.

  • Many employees lost their jobs as a result of the bust-up takeover strategy.

  • The company underwent a bust-up takeover last year.

  • Investors are wary of a bust-up takeover due to the risks involved.

  • The bust-up takeover resulted in the selling off of crucial assets, leading to significant changes in the management structure.

  • Following the bust-up takeover, many departments were closed as the new management liquidated assets to settle financial obligations.

Synonyms

buyout
vsbust-up takeover
  • Specialized
53 4.7

The purchase of a company or most of its shares to take control

often uses heavy borrowing and asset sales to pay acquisition loans
leveraged buyout
vsbust-up takeover
  • Specialized
7 8.5

Buying a company mostly with borrowed money and using its assets as security for the loan

relies on selling company assets to repay acquisition debt

Antonyms

363 3.1

Being steady and not likely to change

52 4.7

A situation where things stay the same or keep happening without big changes

How Aggressive

bust-up takeover
  • Archaic
9.9
hostile takeover
  • Specialized
12 5.8
takeover
49 4.7
friendly takeover
  • Specialized
1 4.4

Surface Forms

Morphology

bust-up + takeover

The element 'bust-up' evokes 'breaking up' and 'takeover' clearly signals an acquisition, so a learner who knows both constituents could infer that the company is being broken up as part of an acquisition. However, the precise technical sense—a leveraged buyout where assets are sold to repay acquisition debt—is specialized and not fully predictable from the parts, and 'bust-up' is relatively uncommon, reducing full transparency.

Etymology

Bust-up takeover comes from the image of a buyer who busts up a company—breaking it into pieces—and then sells those pieces. Because the buyer uses the money from those sales to pay the 'borrowed money' used to buy the firm, the phrase now means a takeover where the company's parts are sold to cover the loan.