What is a Blitzkrieg Tender Offer?

Often used as a term to describe a friendly takeover, the Blitzkrieg tender offer is characterized by an offer made to investors and owners of a company that is so attractive that there is no possible chance of the offer being rejected. While employing a term that dates back to World War II, the Blitzkrieg tender offer is not based in any type of wartime strategy, but instead refers to the speedy nature of the acceptance of the offer once the potential buyer or group of buyers presents it.

Unlike a hostile takeover, a Blitzkrieg tender offer does not include any attempt to secure controlling interest in a company without the knowledge of the current shareholders or owners. The strategy involves approaching the owners and shareholders directly, and submitting a compelling offer that will immediately pique the interest of all involved parties. Generally, takeovers of this type progress somewhat rapidly, with current owners and investors entering into dialogue with the potential buyers that tends to lead to offer acceptance in a short period of time.

Once the offer has been accepted, the progression of a Blitzkrieg tender offer can move along quickly. The owners and shareholders generally engage the services of legal counsel to finalize the terms of the sale and make sure all the supporting documents are in place. Inventory listings and other pertinent paperwork relating to the operation of the company is forwarded to the new owners, and announcements to the employees are made. In many cases, the new owners participate with the former owners to make the announcements to the employee base, as well as to the clients of the corporation. Often, press releases are drafted and forwarded to the appropriate outlets once the employees are informed of the change in ownership, and press conferences may be scheduled with industry media outlets.

In most cases, a Blitzkrieg tender offer is researched in detail before it is ever extended to the current owners and shareholders. This comprehensive research not only helps to increase the chances that the offer will be accepted, but also proves helpful in escalating the acquisition process once all parties agree on the terms.