Open bid

An open bid is a structured sale process in which the acquisition price is determined through a competitive bidding process among multiple potential buyers — either sequential (successive bid rounds) or simultaneous. It is used in structured sale processes to maximise price by creating direct competition among qualified buyers. Its effectiveness depends on the number and quality of participants, process transparency and the quality of deal documentation provided. Open bid processes are preferred by financial sellers (PE funds) seeking price maximisation over negotiating certainty.

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Example: in a Swiss industrial group sale, Hectelion runs a two-round open bid: after receiving 5 indicative offers (CHF 28–38 million range), the 3 best candidates are invited to submit binding offers after due diligence. The final accepted offer is CHF 41.5 million — CHF 3.5 million above the best initial bid, driven by the competitive pressure maintained throughout the process.

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Hectelion designs open bid processes to maintain maximum competitive tension, consistently achieving price outcomes above bilateral negotiation alternatives for our sell-side clients.