To the extent that a potential buyer can influence the terms of the tendering procedures proposed by the debtor, the potential buyer can gain an advantage over other potential bidders for the purchase of the assets for sale. While this is not particularly common in small personal bankruptcy filings, tracking agreements are used to maximize the total value of assets during a sale. Starting from a hunting term where poultry would not flee hunters hidden behind their horses, horse tracking agreements occur when a third-party buyer tests the market for a debtor. These companies or individuals make an initial offer in the hope of increasing the value of a debtor`s assets in bankruptcy auctions. In general, a sale of stalking horses can be good news for everyone involved. If you enter the public sale with an acceptable starting offer, you will at least have the peace of mind that the asset will receive more than just lowball offers. But there is room for you to be treated unfairly. Any purchase contract that deters other bidders is likely to result in a decrease in the selling price. There are a few things you need to pay attention to: How does a tracker horse work in favor of the bidder? There are many incentives for the bidder. First of all, the selected company is selected to make the first offer of the company in difficulty. Second, if a bidder decides to place a bid, it usually has the option of conducting an internal review of the company`s assets. Other bidders may not have enough time to do their due diligence to inspect the same assets. .