Private Company Secondary Auctions

provide a centralized format for competitive bidding and transparent prices for seller equity

This Solution Helps

  • Private Companies
  • Founders
  • Individual Investors
explore

Nasdaq Private Market (NPM) uses its legal expertise and experience with secondary trading to set up and facilitate auction-style bidding processes for private company shareholders and investors.

PC Auctions Process Graphic

 

With companies staying private longer and dry powder continuing to remain at all-time high levels, NPM addresses the growing liquidity demands of the private market with a secondary auction format that provides competitive pricing and potentially allows company shareholders to be more involved in the transaction itself.

Benefits of Secondary Auctions

Competitive Price Discovery

Companies that run auctions may benefit from competitive price discovery from sophisticated, institutional buyers, which generally leads to more transparent clearing price calculations.

Customizable Auction Parameters

Auctions provide the same level of customization, if not higher, than standard private company tender offers. Companies can name price floors and ceilings, project or limit the amount eligible to be sold in the transaction, and more.

Time to Liquidity

Depending on the structure, companies may be able to carry out company-wide auctions in less time than it takes to hold a traditional tender offer, mainly due to the 20-business day mandatory tender offer window.

Nasdaq Private Market's
GO-LIVE
framework provides a high-level benchmark for companies that may benefit from running an auction
Go Live Framework with title
An Introduction to Secondary Auctions
Learn about private company auctions and the advantages and disadvantages of auction-based transactions in NPM's thought leadership piece.
READ THE WHITEPAPER
Nasdaq Private Market's
GO-LIVE
framework provides a high-level benchmark for companies that may benefit from running an auction

Auction Types We Support

Nasdaq Private Market can run a variation of auctions to achieve competitive price discovery.

  • Dutch Auctions

    Bids and asks, if applicable, are placed by buyers and sellers, with one clearing price calculated for all participants.

  • Buy-Side Auctions

    The sell-side demand is projected by the company, placing buyers in a competitive bidding process that is followed by a tender offer.

  • Seller IOI Auctions

    Prior to the transaction, sellers enter their asks for price per share and the number of shares willing to be sold.

  • English Auctions

    The price increases until one bidder is left; the remaining bidder wins and pays the highest bid amount.

  • Customizable Auctions

    Components such as price floor/ceiling, timing of bids/asks, seller eligibility, existing/new buyers, and more can be customized.

Buyers can place their
Bids
after seeing both the maximum sellable amount and price bands in a buy-side auction
People placing bids with green sheets of paper
Buy-Side Auction Process
Learn more about NPM's buy-side auction process.
DOWNLOAD THE FACT SHEET
Buyers can place their
Bids
after seeing both the maximum sellable amount and price bands in a buy-side auction

Contact us about secondary auctions

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