Counterbid

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.

RELATED TERMS
  1. Best Alternative To A Negotiated ...

    The course of action that will be taken by a party engaged in ...
  2. Bidding War

    A situation where two or more buyers are so interested in an ...
  3. Strategic Buyer

    A type of buyer in an acquisition that has a specific reason ...
  4. Bid

    1. An offer made by an investor, a trader or a dealer to buy ...
  5. Business

    1. An organization or enterprising entity engaged in commercial, ...
  6. Hostile Takeover

    The acquisition of one company (called the target company) by ...
Related Articles
  1. Investing Basics

    Analyzing An Acquisition Announcement

    These deals can make or break investors' returns. Find out how to tell the difference.
  2. Bonds & Fixed Income

    Cashing In On Corporate Restructuring

    Companies use M&As and spinoffs to boost profits - learn how you can do the same.
  3. Forex Education

    Mergers & Acquisitions: An Avenue For Profitable Trades

    When major corporate transactions have a big impact on the currency markets, you can benefit.
  4. Mutual Funds & ETFs

    The Buy-Side Of The M&A Process

    With almost $2 trillion in sales yearly, find out how these mergers and acquisitions take place.
  5. Investing

    Use Breakup Value To Find Undervalued Companies

    Find out a company's worth if it were sold in pieces - it may be more than you think.
  6. Investing

    Mergers Put Money In Shareholders' Pockets

    Learn the five ways mergers and acquisitions can increase a company's value.
  7. Entrepreneurship

    7 Steps To Selling Your Small Business

    Money in the bank and newfound free time make this grueling process worth the trouble.
  8. Markets

    Negative Interest Rates Require Flexibility in Fixed Income

    Here’s a quick look at four charts showing just a few of the interrelated ways the global fixed income markets have dramatically changed over the last seven years.
  9. Term

    The Difference Between a Long and Short Position

    Stocks are owned in a long position and owed in a short position.
  10. Economics

    Understanding Game Theory

    Game theory is a model for making decisions that weighs the benefits of a choice along with the interaction between participants.
RELATED FAQS
  1. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Answer >>
  2. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Answer >>
  3. What is after-hours trading? Am I able to trade at this time?

    After-hours trading (AHT) refers to the buying and selling of securities on major exchanges outside of specified regular ... Read Answer >>
  4. What is the difference between positive and normative economics?

    Positive economics is objective and fact based, while normative economics is subjective and value based. Positive economic ... Read Answer >>
  5. Do working capital funds expire?

    Find out how and why a company's working capital can change over time, though the fund does not actually expire, and how ... Read Answer >>
  6. How do hedge funds use equity options?

    Learn about two of the most common equity option strategies hedge fund managers use every day to generate above-average returns ... Read Answer >>
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  3. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  4. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  5. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  6. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
Trading Center