Stalking-Horse Bid

You run a chain of tickle bars that just went bust. (They were bars where people would pay to get tickled with feathers. Unfortunately, most of your employees were swept up in a prostitution sting and you ended up going bankrupt.)

It's time to sell your assets in bankruptcy. First step: choose a stalking horse bidder.

This process involves finding a bidder to start the action. Basically, it's the first bid you'll receive, setting the floor for subsequent bids. It likely won't be the final offer for the assets (your creditors certainly hope it won't be). It's just a way to set the lowest potential amount and work from there.