Controlled Auction

Business, Legal & Accounting Glossary

Definition: Controlled Auction


Controlled Auction


Full Definition of Controlled Auction


A controlled auction is a form of sales process in which multiple potential purchasers make acquisition offers for the same target. A conventional auction has numerous parties bidding concurrently for a firm. Controlled auctions are distinguished by the fact that the procedure is meticulously organised in order to establish and maintain a strong negotiation position. In a controlled auction, the opportunity is presented in a market-like manner to a select number of qualified bidders.

When selling a business, a regulated auction process has been proven to increase value. A controlled auction’s principal purpose is to generate the highest feasible cash buying price. Along with price, another critical component of the controlled auction process is the ability to govern contract conditions through the use of a seller-friendly buy and sale agreement.

The two most critical components of a successful regulated auction process are as follows:

  • Fully understanding what the seller’s objectives are; and
  • Having the ability to maintain strict control over the process.

When interviewing investment banks or business brokers for the purpose of selling your business, request a full overview of their auction procedure. All investment bankers and brokers have the ability to approach several potential buyers and sellers in an attempt to generate an auction. Ascertain that the organisation you hire is experienced in conducting controlled auctions in order to maximise your sales price.


Synonyms For Controlled Auction


Private Auction


Related Phrases


Strategic Buyer
Seller Friendly Purchase Agreement
Proprietary Deal
Negotiated Sale
Investment Bank
Business Broker
Purchase Price
Success Fee
Lehman Scale
Mergers and Acquisitions


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Definition Sources


Definitions for Controlled Auction are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th January, 2022 | 4 Views.