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Is There One Best Way to Sell a Company? Auctions Versus Negotiations and Controlled Sales-super-1

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  • Audra L. Boone
  • J. Harold Mulherin

Abstract

For managements and boards that have decided that the value-maximizing choice is to sell their companies, the board must then address another important question: what is the best way to sell the company? Should they use a wide-ranging auction that seeks to attract the largest number of bidders, exclusive negotiation with a single bidder, or a "controlled sale" with a limited group of potential buyers? Copyright Copyright (c) 2009 Morgan Stanley.

Suggested Citation

  • Audra L. Boone & J. Harold Mulherin, 2009. "Is There One Best Way to Sell a Company? Auctions Versus Negotiations and Controlled Sales-super-1," Journal of Applied Corporate Finance, Morgan Stanley, vol. 21(3), pages 28-37.
  • Handle: RePEc:bla:jacrfn:v:21:y:2009:i:3:p:28-37
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    References listed on IDEAS

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    Cited by:

    1. Chira, Inga & Volkov, Nikanor, 2017. "The choice of sale method and its consequences in mergers and acquisitions," The Quarterly Review of Economics and Finance, Elsevier, vol. 63(C), pages 170-184.
    2. Fidrmuc, Jana P. & Roosenboom, Peter & Paap, Richard & Teunissen, Tim, 2012. "One size does not fit all: Selling firms to private equity versus strategic acquirers," Journal of Corporate Finance, Elsevier, vol. 18(4), pages 828-848.
    3. Crifo, Patricia & Forget, Vanina D. & Teyssier, Sabrina, 2015. "The price of environmental, social and governance practice disclosure: An experiment with professional private equity investors," Journal of Corporate Finance, Elsevier, vol. 30(C), pages 168-194.
    4. Joosung Lee & Daniel Z. Li, 2018. "Sequential Search Auctions with a Deadline," Working Papers 2018_03, Durham University Business School.
    5. Patricia Crifo & Vanina Forget & Sabrina Teyssier, 2012. "The price of unsustainability: An experiment with professional private equity investors," Working Papers hal-00757203, HAL.
    6. J. Mulherin & Kiplan Womack, 2015. "Competition, Auctions & Negotiations in REIT Takeovers," The Journal of Real Estate Finance and Economics, Springer, vol. 50(2), pages 151-180, February.
    7. Becker, Jan U. & Clement, Michel & Nöth, Markus, 2016. "Start-ups, incumbents, and the effects of takeover competition," Journal of Business Research, Elsevier, vol. 69(12), pages 5925-5933.

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