TLDR:
A tender offer is a public bid made by an acquiring company or individual to purchase shares of a target company at a specified price, usually at a premium to the current market price, to gain control.
Tender Offer Process
Public company tender offers are subject to the Williams Act and SEC Rule 14D, requiring the offeror to keep the offer open for at least 20 business days, extend the offer if increased, allow shareholders to withdraw tendered shares, and pay the same price to all tendering shareholders. For friendly acquisitions, tender offers can close faster than mergers (which require shareholder meetings and proxy statements), making them a popular structure for strategic acquirers who want to move quickly. Hostile tender offers launch without board approval, attempting to purchase shares directly from shareholders over the target board’s objection.