What is often the ratio of prospective buyers to actual reasonable offers in Mergers and Acquisitions?

In the context of Mergers and Acquisitions, it is common to observe a significant disparity between the number of potential buyers interested in an acquisition and the number that actually submits reasonable offers. The ratio can often be approximately 100 to 3, which reflects the reality that while there may be many potential buyers expressing interest, only a small fraction of those will proceed to make offers that are seen as realistic or acceptable by the seller.

This ratio underscores the extensive vetting process that prospective buyers must go through, involving considerations of the target firm's financial health, strategic fit, and the terms of the deal. Many buyers may initially show interest, but as they perform due diligence and assess the complexities involved in the transaction, they may choose not to proceed with a formal offer.

The other options suggest a more favorable ratio of offers to interested buyers, which does not accurately capture the typical dynamics of M&A situations where initial interest from many players often does not translate into actual, credible financial proposals.