Definition of 'Bust-Up Takeover'
A corporate buyout in which the acquirer sells off a piece of the company in order to pay down some of the debt used to finance the initial buyout. The acquirer buys the company by taking on debt and then repays it with the target's assets once it has control. This is a strategic method used in cases where the target company has undervalued assets that the acquirer seeks to exploit.
Investopedia explains 'Bust-Up Takeover'
This style of buyout, as with any leveraged buyout, involves heavy analysis on behalf of the acquirer to adequately value the target company's assets and to make sure that the return on those assets pays for the added cost of debt.
If the target company has significantly undervalued assets and the acquirer has little cash (and so needs debt to fund the purchase), this strategy could be implemented to successfully unlock value.