What's the Difference Between a Tender Offer and an Acquisition?

The tender offer is a mechanism for one person to sell their shares, get out and get some money to someone else who may be more active in the business. An ownership stake in a private firm of any size is just totally non liquid. You cannot really do anything with it. And that's why those two scenarios create exits for the investors, or create ways to get liquidity for the investors and the employees who have taken options.