Often, sales proceeds are the least significant benefit, but the most difficult hurdle for politicians. All too often, the enterprise in question has a negative value when viewed by every valuation methodology except future potential. Governments should not go into the program expecting huge financial windfalls. Make unpalatable changes before privatization. The government cannot expect the new owner to clean up its mess.
Competitive bids bring better bargains.
Nothing spurs investors to put their hands deeper into their pockets than the fear that their rivals may beat them to the punch. Bids also reduce the possibility of collusion, thereby enhancing the image of the government and the country. Investors prefer to have their privatization deals validated by open bidding procedures, rather than risk the wrath of an incoming administration looking suspiciously at deals negotiate by the previous government. It may sound hackneyed, but transparency pays. Involve all stakeholders because any one of them can derail the process at any time.