Private treaty sales are generally suited for situations in which the asset needs a longer period of exposure and a more targeted approach to potential buyers. Assets sold via Private Treaty tend to be more specialized or complex.
Typically, entire plant along with land and machinery, special purpose machines are some of the assets that can be handled under Private Treaty Sale. This process is highly specialized and involves a lot of back end work such as data collection, detailing, asset marketing strategy, etc. It also involves high-end market making services in terms of identifying the right buyer and mediating between the buyer and seller with regard to detailed inspection of assets, and the related technical and financial discussions. Private Treaty Sales is generally restricted to only 1 - 2 buyers, which could be companies trying enter into new business areas or companies wanting to expand their existing capacities, etc.
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