Sell-side auction

A sell-side auction is a form of structured sale in which the seller puts several potential buyers in competition, under a defined timetable and rules, to maximise the price and terms of the transaction. It contrasts with a bilateral negotiation with a single buyer.

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The process is organised in phases (teaser, process letter, indicative offers, due diligence, binding offers) and requires rigorous preparation of the information and the data room. Competitive tension is the seller's main value lever.

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Example: the sale of an SME is run as an auction among 8 pre-selected buyers; competition moves the price from CHF 18 million (median indicative offer) to CHF 22 million (best binding offer), value creation of over 20%.

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At Hectelion, we run controlled sell-side auctions to maximise value and secure the disposal terms for our clients.