The Unsolicited Bidding Process: What to Expect & Tips to Stay Ahead of the Game
Unsolicited proposals are commonplace in the business world. However, if you’re not prepared for one, it can be difficult to know what to expect.
To stay ahead of the game and avoid losing money or pull within your business, you need to act quickly during the bidding process.
Keep reading to find out more about what you should do if you receive an unsolicited bid for your company so you know what to do when the bidding war starts!
1. Get a Team Together
The first and most important thing you need to do is put a team of experts together. These individuals will provide you with advice and guide you through the whole process.
Let’s take a closer look at the four main members of this team that you’ll need to assemble:
This person determines whether or not the unsolicited proposal is legitimate and financially sound. It’s important to have a qualified individual who knows how to get the information needed about the company who made the bid.
The proxy solicitor is the main bridge of communication between you and the company’s shareholders. This role is vital, especially if the company attempting the takeover starts trying to get control of the board of directors.
Public Relations Firm
What you say publically during this time could make or break your company. For that reason, having a well-established public relations firm on your side will help ensure nothing goes public that could hurt your chances of winning a bidding war.
Business law is complex. Although as a business owner you likely already know many of these laws, only an experienced attorney knows these laws well enough to provide you with the legal counsel you need in a takeover battle.
2. Tell the Board
Once you have your team together, you can start opening up communication between yourself and your board of directors.
Even if there is a chance of an unsolicited bid, the board should know about it. You want them to be ready for action rather than surprised by it.
Meet with your board as often as you need throughout the takeover process. This engages each member and informs them every step of the way. One of the quickest ways to lose board support is to try to remove them from the process.
3. Set Up Communication Channels
In addition to the board, your shareholders, employees, and customers need to know what’s going on during the bidding process.
You’ll want to put several individuals in charge of communication and ensure each of them knows what they are legally allowed to share with others. Have all questions directed to this group so there’s no confusion.
This group can then report back to you as well as the board to keep you informed as to what people are asking and saying. Then, you can better respond to any concerns.
Need Legal Help Through the Bidding Process?
Now you know the three main steps you need to follow to get through the bidding process if you face an unsolicited proposal.
If you’re still looking for legal counsel to round out your advisory team, contact us today. We have years of experience in business law that will allow you to make the right decision regarding your company.