Series 79: Broad Auction

Taken from our FINRA Investment Banking Exam

Definition of the term Broad Auction...

an M&A process in which the seller publicly announces that the target is up for sale, and bids are invited from all interested parties. It poses the greatest difficulties for maintaining confidentiality relative to its alternatives. However, it has the highest chance of maximizing the target’s sale price. Also called a public auction. Compare to negotiated sale, targeted solicitation, and limited auction.

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