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Buying and selling

Stealth acquisition

A purchase where the buyer's identity is kept from the seller, usually through a broker or an intermediary company. It is used so the seller does not raise the price after learning who wants the name.

Why it matters

If a seller learns a large company wants a name, the price often jumps. A stealth acquisition avoids that by having a broker make the approach. The broker negotiates, and the buyer's name stays private until the deal is nearly done. Escrow and a purchase agreement still protect both sides. A common mistake is a buyer contacting the owner directly from a company email, which gives the identity away. Another is using a weak intermediary without a clear contract. Buyers should agree in writing how and when their name will be disclosed.

Source: sullysblog.com

Read nextHow to Buy a Domain Name That Someone Already Owns

Where we use this term

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