What Does Competitive Bid Process Mean?
A competitive bid process is mostly used in the procurement of goods and services. The process entails submitting a sealed envelope detailing the price and terms of an offer. The recipient of the offer then selects the competitive bidder that has delivered the lowest price or best terms. While not practiced regularly, a competitive bid process can be done with a company sale whereby the investment banker would skip the traditional M&A process and immediately solicit letters of intent (LOI) to be delivered confidentially from all potential buyers by a certain date.