A Dutch auction is a way of pricing shares where the price of the shares offered is reduced until there are sufficient bids to sell all shares. All the shares are then sold at that price.
It can be used as a method to enable a company to determine a fair market price at which to buy back its shares. Essential to achieving the desired outcome with the auction is the availability of a detailed breakdown of who your investors are and a well thought out plan that incorporates all possible market conditions and possibilities. The plan will also include a communication strategy for key stakeholders throughout the course of the entire process.
Castle Brick International’s Dutch auction services provide vital insight and advice to companies as the process develops. As your experienced advisers, our team members work in close harmony with your company’s representatives and officers throughout the offer stage to supply you with real-time information, feedback from your shareholders, and a prediction for the level of participation and results.