Understanding Stalking Horse Bids
In the world of mergers and acquisitions, the term “stalking horse bid” often surfaces, particularly in the context of bankruptcy proceedings. While it might sound like something out of a medieval tale, a stalking horse bid is a modern financial maneuver that can play a crucial role in the sale of distressed assets. What is a Stalking Horse Bid?A stalking horse bid is an initial bid on the assets of a bankrupt company, made by a prospective buyer chosen by the debtor. This bid sets the floor pri