Preferred bidder

A bidder selected to pursue a transaction with the seller. Selection does not guarantee completion or by itself establish whether a definitive agreement has been signed; exclusivity may be separately agreed.

Preferred bidder in practice

Hypothetical: a seller selects one bidder for further diligence and negotiation. The parties may agree an exclusivity period while working through transaction documents and conditions. Completion and any changes to price depend on the negotiations and agreed terms.

Letter of intent (LOI) · Exclusivity · Proprietary vs auctioned deal flow · Reservation price · All of the glossary