Glossary · Doing the deal
Competitive bidding
In short
A process where multiple parties submit offers to buy an asset or business, with the seller typically choosing the highest or most favorable bid.
What it means in a deal
While most small business acquisitions are private sales, competitive bidding can occur if a seller receives multiple offers or if assets are sold via public auction. If you're in a competitive situation, your LOI terms, not just price, can make your offer stand out.
Related terms
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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