best-efforts basis

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Best-Efforts Basis

An agreement between an underwriter and an issuer in which the underwriter agrees to place as much of an offering with investors as possible, but is not responsible for any portion of the offering it fails to sell. For example, suppose an issuer makes a new issue of 100,000 shares. The issuer may make a best effort basis agreement with an underwriting firm for the underwriter to sell those shares to investors. If the underwriting firm only sells 90,000, however, it is not required to buy the remaining 10,000 from the issuer. This reduces the risk to the underwriter; to reduce the risk to the issuer, most best efforts are all-or-none offerings.

best-efforts basis

1. An agreement by an investment banker to do its best to oversee but not guarantee the sale of a security issue in the primary market. See also underwriter.
2. An investor's market order to buy or sell a security in which the brokerage firm agrees to obtain the best possible price.
References in periodicals archive ?
The offering was sold on a best efforts basis. Boustead Securities, LLC acted as the sole underwriter for the offering.
providers will not be required to procure additional resources to provide services to phe and therefore services would be made available on a best efforts basis.Commissioned by hm government, public health england (phe) ha
The contract has been signed to proceed, on a best efforts basis, with an offering of up to USD20,000,000 of series 1 preferred trust units of the Trust by way of an exempt market offering.
Riley, is acting as the underwriter on a best efforts basis. B.
Dawson James Securities is acting as the sole placement agent for the proposed offering on a best efforts basis.
as its agents, on a "best efforts basis," in connection with a proposed private placement of units.
This is true even where controlling shareholders have assented to proceed on a best efforts basis to ensure that the redemption would occur even though they may not have a legally enforceable right to force the corporation to effect the redemption.
The Bank will direct an amount equal to the net proceeds of the issue of the Notes to lending projects which aim to Light up and Power Africa, subject to and in accordance with the Issuers lending standards, and on a best efforts basis. The proceeds of the Notes will be included in the ordinary capital resources of the Issuer and will be used for the general operations of the Issuer in accordance with the Agreement establishing the African Development Bank.
The shares are being offered on a best efforts basis by authorized representatives of Bank of Botetourt to current shareholders of record and "street name" shareholders.
The subscription agent will attempt to sell the ineligible holders' rights held by the subscription agent, on a reasonable best efforts basis, from the extended deadline through June 26, 2009 at such prices determined by the subscription agent.
The shares are being offered on a best efforts basis by authorised representatives of Bank of Botetourt to current shareholders of record and 'street name' shareholders.
The gross proceeds from the capital increase in the event of a placement of all new shares, which is executed on a best efforts basis, are expected to amount to up to 287 million.

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