Auction sale

Copyright © 2024 LexisNexis

Auction sales

Auction processes play an important role in particular industries, eg in the private equity industry, in government privatisations, or in large value transactions. An asset sale by way of auction is designed to elicit competitive bidding for the target business among interested parties at the highest price and on the best possible terms. For the seller, there is a high certainty that the sale will be completed to a preferred bidder (which is preferable from management's point of view). It should be noted that share sales are more likely to be conducted by way of auction sale than asset sales.

Auctions can be run with many bidders, or they can be targeted with a select few bidders. This will generally depend on the market in which the target company operates and the nature of its business. A seller will generally take control of an auction process and will appoint various advisers to act on its behalf, for eg an investment bank, which will market the sale of the target business on behalf of the seller.

See Practice Note: Auction sales—asset purchase and Checklist:

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in TAKE A FREE TRIAL
Powered by Lexis+®
Latest Corporate News

High Court dismisses judicial review relating to Government order requiring Russian-backed investment firm to sell broadband provider under the NSIA 2021

Corporate analysis: LetterOne Core Investment, S.A.R.L. and another) v Secretary of State for Business, Energy and Industry, concerning a judicial review of a final order made pursuant to section 26(3) of the National Security and Investment Act 2021 (NSIA 2021) made by the Secretary of State for Business, Energy and Industrial Strategy requiring LetterOne to sell broadband business Upp Corp Ltd on national security grounds (Final Order). The High Court dismissed the challenge.

CP24/2: FCA further consults on enforcement transparency proposals

The Financial Conduct Authority (FCA) has issued the second phase of its consultation paper CP24/2 on proposals to increase transparency in enforcement investigations. This follows significant concerns raised in response to the original consultation. The FCA is now seeking further views on the practical implementation of the public interest test, with the FCA Board aiming to reach a final decision in the first quarter of 2025. This consultation forms part of the FCA's broader reforms to enhance the pace and focus of its enforcement efforts. Responses are sought by 17 February 2025.

Corporate weekly highlights—28 November 2024

This week's edition of Corporate weekly highlights includes publication by the FRC of its Annual Review of Corporate Governance Reporting for 2024, the Pre-Emption Group’s second annual report on the adoption of its updated Statement of Principles on the disapplication of pre-emption rights for UK listed companies, and news of fines imposed by the FCA on Barclays and a former executive of Wizz Air. It also includes the publication by the Department for Energy Security and Net Zero of a summary of responses to its October 2023 call for evidence on Scope 3 greenhouse gas emissions reporting, and the Companies House 2024–5 Christmas and New Year opening times.

FCA fines former Wizz Air executive for MAR breaches

The Financial Conduct Authority (FCA) has imposed a £123,500 fine on former chief supply chain officer at Wizz Air, András Sebők, for breaching Articles 19(1) and 19(11) of the UK Market Abuse Regulation (MAR). Sebők, acting in his capacity as a person discharging managerial responsibility (PDMR), traded the company's shares during restricted periods and failed to disclose his trades within the required timeframe. This is the first time the FCA has fined a PDMR for trading company shares during closed periods under Article 19(11) of MAR, and the second time it has fined a PDMR for failing to disclose personal trades under Article 19(1) of MAR.

View Corporate by content type :  
News
Practice notes
Precedents
Q&As

Popular documents

Asset purchases

Asset purchasesA business can be acquired by one of two methods: an asset purchase or a share purchase. The two types of transaction are fundamentally different in their nature and involve very different processes and documents.Nature of the transactionWhy an asset purchase?An asset purchase enables

Would buyers of business assets, including goodwill, under an asset purchase agreement be liable for the

Would buyers of business assets, including goodwill, under an asset purchase agreement be liable for the liabilities and debts of the existing business (including tax and employee related liabilities) and how can they limit their liability?An asset purchase enables the buyer to purchase only those

Guarantee and indemnity—seller obligations—private M&A—asset purchase

Guarantee and indemnity—seller obligations—private M&A—asset purchaseThis Deed is made on [insert day and month] 20[insert year]Parties1[insert name of guarantor entity] [of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at]

Warranties and indemnities—asset purchase

Warranties and indemnities—asset purchaseAn asset purchase agreement will typically include warranties and indemnities given by a seller in favour of a buyer.Why we need warranties and indemnitiesThe starting point for a buyer in any asset purchase transaction is the maxim caveat emptor (let the
Asset purchases

Asset purchases

Asset purchasesA business can be acquired by one of two methods: an asset purchase or a share purchase. The two types of transaction are fundamentally different in their nature and involve very different processes and documents.Nature of the transactionWhy an asset purchase?An asset purchase enables

Would buyers of business assets, including goodwill, under an asset purchase agreement be liable for the

Would buyers of business assets, including goodwill, under an asset purchase agreement be liable for the

Would buyers of business assets, including goodwill, under an asset purchase agreement be liable for the liabilities and debts of the existing business (including tax and employee related liabilities) and how can they limit their liability?An asset purchase enables the buyer to purchase only those

Guarantee and indemnity—seller obligations—private M&A—asset purchase

Guarantee and indemnity—seller obligations—private M&A—asset purchase

Guarantee and indemnity—seller obligations—private M&A—asset purchaseThis Deed is made on [insert day and month] 20[insert year]Parties1[insert name of guarantor entity] [of OR a company incorporated in [England and Wales] under number [insert registered number] whose registered office is at]

Warranties and indemnities—asset purchase

Warranties and indemnities—asset purchase

Warranties and indemnities—asset purchaseAn asset purchase agreement will typically include warranties and indemnities given by a seller in favour of a buyer.Why we need warranties and indemnitiesThe starting point for a buyer in any asset purchase transaction is the maxim caveat emptor (let the