A tender offer is a type of transaction in which a company or third-party makes an offer to purchase a significant portion of a company's outstanding shares from its shareholders.

Tender offers are usually made at a premium to the current market price, meaning that shareholders are able to sell their shares back to the company at a higher price than what they would receive in the open market. Shareholders have the option to accept or reject the offer.

A **voluntary tender offer** is an offer made by a company or an outside party to purchase a significant portion of the company's outstanding shares from its shareholders at a premium to the current market price. The shareholders have the option to accept or reject the offer.

An **involuntary tender offer** is an offer made by an outside party without the approval of the company's management. This type of offer is usually made by an activist investor, another company, or a group of investors with the intention of gaining control of the target company, or to force a change in the company management or strategy.