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You just take them out of the process, surely...
And if all the bids are “insulting” that just means your view on value isn’t in-line with the market.
Sure it’d make the process easier, but the process is about maximizing value. Auction processes get you higher values
Unless you pitched a higher multiple? And are struggling to reach it - there should be no worries
If you have enough other bids, that you would drop them anyway, have done the friendly call saying “hey you’re way off on value here like 2 turns below the next lowest bid. Wanted to give you a chance to resubmit before we share with our client if you’re truly interested”. Gives them a chance to save face if they are (some firms care about their reputation on how they behave in processes) and if not, they’ll sometimes withdraw their formal IOI and in update materials we’ll usually put something like “verbally indicated x to x price”