Series 79: 11.2.10. Assisting In Determining The Sale Process

11.2.10. Assisting in Determining the Sale Process

Anything other than a negotiated sale with a single buyer will require some kind of auction process. Each type of sale process has advantages and disadvantages. The seller and sell-side adviser will decide which process is optimal given the seller’s specific needs and desires.

In a targeted solicitation, the banker will contact a relatively small group, typically five or fewer, of potential buyers. This approach maximizes confidentiality and tends to result in a faster sale process, but the lack of buyer competition limits the seller’s ability to obtain a maximum price.

A limited auction