What is a bidco?

A bidco, or "bidder company," is a type of investment vehicle typically used in Mergers and Acquisitions. It is often established by private equity firms or investors to facilitate the purchase of a target company. By using a bidco, investors can effectively manage the acquisition process, isolate the target company's assets and liabilities, and secure financing for the deal. This structure can also provide strategic flexibility and help optimize tax implications during the acquisition.