M&A Auction
A structured competitive sale process in which the seller invites multiple pre-qualified bidders to compete for the right to acquire the target. The auction extracts more of each bidder's reservation price through staged information disclosure and competitive pressure. The three primary structures are single-buyer negotiation (no auction), targeted auction (5-10 bidders), and broad auction (30+ bidders). Empirically targeted and broad auctions produce 10-40% higher final prices than single-buyer negotiations for similar-quality targets.
Lessons that use this term
Related terms
Ambiguity Aversion · Anchored Assumption · Asset Beta · Bank ROE Spread · Banker Pitch Deck · Beta
Open this term in the app → — no account needed; browse the full glossary while you research.