A Tender Offer is a proposal an investor(s) makes to buy shares directly from the stockholders of a public company.
The investor will choose to either purchase some shares or all the shares of the business. Usually, if the investor doesn't purchase all the shares, they will still attempt to purchase more than 50%, that way they can obtain controlling interest of the company.
The investor will usually offer a premium to market value to purchase the shares from the shareholders. This will make it more likely for them to accept the tender offer.
If enough shareholders accept a tender offer, it will be approved, which will force all the shareholders to sell at the premium price that most shareholder had accepted.
