Related Terms • Acquisition • Consolidation • Hostile Takeover • Merger • Shareholder • Stock • Two-Tier Bid

Definition: A tender offer is a public offer made to the shareholders of a company by a potential acquirer to purchase their stock at a price much higher than the current market value of the stock. If all goes as planned, the shareholders who accept the tender offer make a significant profit on their holdings, and the acquirer gains control of the company.