Proprietary vs auctioned deal flow
Factual definition
Proprietary deal flow generally involves direct or exclusive access with limited competition; auctioned deal flow involves a competitive sale process. A broker can introduce an exclusive opportunity, while a personal relationship can still lead to a competitive deal.
Proprietary vs auctioned deal flow in practice
Hypothetical: a buyer negotiates exclusively with a seller after a broker introduction. Another buyer knows the seller personally but receives the same materials and bid deadline as several rivals. The first opportunity may be proprietary and the second competitive; the source of the introduction does not settle the question.
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| Question | Proprietary | Broker-referred | Auctioned |
|---|---|---|---|
| Access | Direct or exclusive | Depends on mandate | Structured process |
| Competition | Usually limited; verify | May be limited or broad | Competing bidders |
| Pricing | Negotiated; no guaranteed discount | Depends on process | Competitive bids; basis varies |
How Shayne Fitz-Coy uses Proprietary vs auctioned deal flow
In a competitive process the headline bid is enterprise value. The equity check behind it is a much smaller number, and students routinely confuse the two.
The pressure in the room is real. Someone will always answer a warning about price with no risk it, no biscuit.
Terms Related to Proprietary vs auctioned deal flow
Business broker · River Guide · Advisory agreement · Reservation price · Deal funnel · People Be Lyin · The Value of Modeling Is Dead · Connect Like a Kindergartener · Most Deals Are JAGs · All of the glossary