When Tender Offers Make Strategic Sense

Private companies are staying private for longer, meaning an exit event may be years down the line. A tender offer is a type of transaction that allows companies to provide controlled liquidity to shareholders, including employees and early investors.

What separates well-executed tender offers from potential costly mistakes is understanding exactly when they make strategic sense, and addressing the key considerations involved in the process.

Whether you’re exploring your first tender offer or optimizing your approach, this section provides a framework to help you assess if a tender offer is right for your company, and how to execute one successfully.

It will help you determine whether you have the right demand for a tender offer, lay out an execution roadmap using modern best practices, consider regulatory requirements and tax considerations, help you identify and avoid pitfalls that lead to expensive mistakes and delays, and provide key performance indicators for measuring success.

The insight that underpins many practices in this section is that tender offers require specialized assistance. The companies achieving the best outcomes work with liquidity solution providers, rather than trying to deliver tender offers themselves.