Single-Buyer Negotiation
A bilateral M&A sale process in which the seller engages with one acquirer to negotiate terms, without inviting competing bids. Used when one buyer has uniquely strong strategic logic or a pre-existing relationship makes auction risk unacceptable. Single-buyer paths minimize leak risk and process disruption but produce 0-10% premium to standalone fair value, well below the 20-40% premiums typical of competitive auctions. The board's fiduciary defense for choosing single-buyer must be specific and documented.
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Related terms
Ambiguity Aversion · Anchored Assumption · Asset Beta · Bank ROE Spread · Banker Pitch Deck · Beta
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