An unsolicited bid, also known as a hostile takeover, is when an asset or business is taken over without prior consent or negotiation by an outside party. The target company is one who is not actively seeking a buyer, and must be approached and negotiated with directly to purchase the asset or business. Unsolicited bids are usually executed by private equity firms, venture capitalists, and other investors seeking investments and growth opportunities.

The motivation behind an unsolicited bid is usually based on business strategy and economic returns. For example, an acquisition might be made in order to control market share, reduce competition, generate higher profits, add new products or services to the existing portfolio, expand geographic footprint, gain access to new technologies, or for other advantages that can be more readily achieved through the acquisition as opposed to organically.

Unsolicited bids present unique challenges for the target company due to the fact that it is not actively seeking a buyer and is, therefore, less able to negotiate or draw up the best terms of the sale. The offer needs to be addressed and dealt with in a successful and sensitive manner. Generally, without shareholder approval, the target company can reject the offer or, if consent is granted, look to conclude the deal in a way that is beneficial to all parties.

Additionally, in order to avoid takeovers, target companies might put in place an employee stock ownership plan (ESOP). By giving ownership to the employees, the company can protect itself from unwelcome outside influence and retain control. This can be important for preserving company culture and making sure the company's short- and long-term goals are achieved.

Overall, unsolicited bids provide opportunities for investors to invest in shares or assets of another business, though the process can be complicated and fraught with issues. It is important to note, however, that unsolicited bids can be beneficial to all involved, as they provide capital and growth potential to the company, while providing investors the chance to benefit from a sound investment.