Why Competitive Pressure and Global Broad Auctions Maximize Value in M&A

M&A Axiom: The single most significant driver of premium values in M&A—beyond the company’s inherent qualities—is buyer competition.

This principle lies at the core of our approach. The presence of multiple, motivated bidders transforms deal dynamics, creates leverage, and almost always results in higher valuations, better terms, and greater optionality for the seller.

That’s why we advocate for time-limited global broad auctions as the gold standard in sell-side M&A. These processes are designed to generate urgency, scarcity, and competition—the holy trinity of value creation.

⏳ Why Time-Limited Auctions Create Deal Momentum

Time limits are not a mere convenience—they’re a strategic necessity. Without them, buyers tend to linger, ask endless questions, and delay decision-making. We call this behavior “drip due diligence”—a slow trickle of inquiries that drain your time, energy, and focus.

Think of the classic TV character Columbo, who always returned with “just one more thing.” In M&A, these recurring questions stall progress and sap momentum.

Time-limited auctions impose a “shot clock,” forcing buyers to act decisively or risk missing out.

Middle-market CEOs don’t have the luxury of time. Running a company and running a sale process simultaneously is a delicate balancing act. Without time constraints, the risk of operational distraction, team fatigue, and deal fatigue increases dramatically.

Worse yet, failed or drawn-out deals often leave a “trail scent.” Subsequent buyers may wonder, “Why didn’t the first buyer follow through?” Even a great business can suffer reputational damage from a poorly run or aborted process.

Why Go Global and Go Broad?

We routinely approach 200–400 qualified buyers in a well-structured auction process. These include:

• Strategic acquirers (domestic and international)

• Private equity groups

• Family offices

• Sovereign wealth funds

• Non-traditional or adjacent sector buyers

Many of our most successful transactions have resulted from buyers who were not actively searching for a company like yours—but were inspired to act once they saw the opportunity.

The power of global reach cannot be overstated:

• Foreign buyers often seek U.S. assets for strategic expansion, brand access, or dollar-based cash flows.

• U.S. targets are attractive due to GAAP accounting, legal transparency, capital access, and economic resilience.

• International bidders frequently serve as the “outlier bid”—offering price premiums others wouldn’t.

Probability and the Power of Numbers

According to the Law of Large Numbers, more buyer outreach yields more data points—and a clearer picture of market value. By casting a wide net, we create a marketplace for your company, often surfacing unexpected interest and discovering buyers with the perfect alignment of goals—whether that’s price, values, employee protection, or cultural fit.

The broader the reach, the greater the odds of finding the right acquirer—not just any acquirer.

This contrasts sharply with sellers who take a DIY approach or limit their outreach. They often leave millions on the table and miss the chance to let the market truly speak.

What Auctions Are—and What They Aren’t

The term “auction” may evoke visions of gavels and finality. But in M&A, a broad auction is not a public sale—it’s a controlled, confidential process where the seller retains all optionality.

• You choose if, when, and to whom you sell.

• You set the criteria: price, terms, cultural alignment, or long-term vision.

• You create urgency without sacrificing control.

Auctions are about maximizing optionality while minimizing risk.

Alternatives to a Broad Auction: When and Why

In some cases, a targeted or limited auction makes more sense:

• When the asset is sensitive or disruptive (e.g., proprietary technology or trade secrets)

• When the seller is a large strategic divesting a non-core business unit

• When reputation, confidentiality, or internal morale are at risk

• When buyers are tightly defined or the industry has limited M&A precedent

Even then, a properly managed “mini-process” can still create pocket competition to ensure fair pricing and reduce buyer dominance.

Strategic Buy-Side Considerations

On the buy-side, a “boil-the-ocean” approach often signals lack of clarity or discipline. Buyers with defined acquisition criteria and a clear integration strategy are typically more credible, faster-moving, and less likely to retrade late in the game.

However, for middle-market sellers, the law of large numbers still applies: the more prospective buyers you engage, the more likely you are to generate credible offers and successful outcomes.

Engineering Competition When It Doesn’t Exist

Sometimes, sellers receive an unsolicited or preemptive offer—often from a strategic partner or private equity firm. these offers can be enticing, but they frequently arrive without competitive tension and, as a result, are priced below fair market value.

M&A Axiom: When you have one buyer, you have none.

Most unsolicited offers are:

• Fishing expeditions

• Lowball offers based on incomplete data

• Attempts to tie you up and block competitors from making bids

Without competition, buyers have no incentive to offer top dollar. And unless you’re highly sophisticated and armed with valuation benchmarks, you’re negotiating blind.

That’s why we are often brought in after a seller receives an offer—to structure a competitive back-end process, validate value, and protect the seller’s interests.

Final Thoughts: Control the Process, Control the Outcome

Whether your priority is maximizing price, finding the right partner, or ensuring a smooth transition, buyer competition remains the single greatest value lever at your disposal.

• A time-limited, global, broad auction puts you in the driver’s seat.

• It creates urgency, flushes out real buyers, and generates real offers.

• It allows you to confidently say: “We’ve tested the market, and this is the best deal.”

Considering a sale or evaluating an offer? Let’s talk. Our team specializes in building custom auction processes that optimize outcomes, protect your legacy, and unlock maximum shareholder value.