Breakup Analysis

The question in breakup analysis is: “What is a company worth if I break it up and sell off the pieces?” It is generally used only if a company operates in more than one major line of business.

All four of the other methodologies are applied in breakup analysis.

It is, however, important to consider the tax consequences of breaking up a company and selling off the component pieces, since adverse tax consequences can nullify any additional value that otherwise might have been created in a breakup scenario.