Negotiated Sale
Private Equity glossary · Private Equity Fundamentals
Definition
A transaction conducted bilaterally with a preferred buyer rather than a broad auction process.
Negotiated Sale in plain English
When you sell something valuable, you can either run an auction — invite lots of bidders and let them compete — or quietly work out a deal with one buyer you already like. A negotiated sale is that second path: a one-on-one ('bilateral') deal with a single preferred buyer, no crowd. It's like selling your car to a trusted neighbor for an agreed price instead of listing it publicly and fielding twenty offers. Sellers choose it for speed, privacy, and less hassle, trading away the chance that a bidding war might have pushed the price higher.
Learn these first
Related Private Equity terms
Private Equity practice questions · Private Equity flashcards · Private Equity study guide