DEFINITION of 'Counterbid'

A purchase offer made in counter to the offer of another potential purchaser. The term is often used in discussing the sale of one business to another. During a bargaining process it is not uncommmon for each side to issue multiple counter offers during the negotiation process.

BREAKING DOWN 'Counterbid'

Counter offers can come in a variety of options. During a sale negotiation either party will make counter offers opposing the other party's offer to reach an agreed price which more closely suits their preferred price. Informal counter offers occur on a daily basis as well, when deciding where to eat lunch to what to watch on the television.

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