A method of selling a company or business (target) by which the seller seeks bids for the target from several prospective buyers in a competitive tender process, rather than negotiating from the outset with a single interested buyer. The auction process is controlled by the seller and typically involves: providing interested parties with an information memorandum relating to the target, compiling a shortlist of prospective buyers based on their indicative offers or expressions of interest, providing shortlisted bidders with access to due diligence information via a data room and obtaining best and final offers with a view to identifying a favoured buyer, with whom the seller will enter into detailed negotiations.

For further information, see Practice notes, Selling a company or business by auction and Practice note, Preparing for a share sale or asset sale: Choice of sale process.