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Our QuietAuctionTM Process Delivers a Better Result for Business Founders

Maximizing value - QuietAuction case Study

This QuietAuction Case Study graphic depicts the range of offers from a real transaction. There were 8 parties interested in acquiring our clients’ company. None of the potential acquirers knew the identities nor financial wherewithal of their competition. 

In accordance with our QuietAuction process, we called for Letters of Intent (LOIs) from each group individually. The response to the LOI call is represented by the navy blue bars. 

After gathering 7 LOIs, we informed the lower offers that if they wanted to continue pursuing the acquisition, they would need to increase their offer (called an auction premium). This auction premium is represented by the light blue bars. 

During the auction premium stage, a private equity group caught wind of the opportunity and submitted an enormous LOI ($140M – shown all in light blue.) This large offer caused a secondary auction premium, represented by the green bar.

The seller compared all the offers on the table and decided to go with the Public Strategic Acquirer (Vertical Integrator – the one with the green bar) because it was the best offer available overall.