A broad auction is an effective bidding method used to attract a large volume of bidders for the sale of an organization. This method is highly effective in maximizing the highest bid for the sale of the company. A broad auction gives the seller unbounded exposure to potential buyers in the market.
Divestopedia explains Broad Auction
A broad auction is a process to attract as many bidders as possible. The broad auction bidding method can cause the value of the company to increase as bidders compete against one another for the acquisition of the company. This benefits the seller as it seeks to find the highest value for the company. The process of a broad auction can be lengthy as each potential bid is carefully evaluated for the acquisition of the business. It is also more difficult to maintain confidentiality when a larger number of bidders are included in the sales process.