Finding Strategic Buyers For Your Business
The best way to increase the selling price of a business is to find strategic buyers for it. The strategic buyer is one that will earn more from the acquired business than a financial* buyer because of unique characteristics of the acquiring company. They may save costs by eliminating duplicate personnel, or utilize their equipment better, or the purchase of the acquired business may allow the acquirer to enter new markets. The acquirer may have a better sales force that will allow them to sell the acquired company’s products to more customers.
A strategic buyer may offer more, than a financial buyer, for the acquired business because the acquired business will generate more income to them. However, if there is only one strategic buyer, and they are aware of it, they may not offer more than a financial buyer knowing that they don’t have competition from another strategic buyer. For these reasons, we want to find as many buyers as possible, financial and strategic, to sell a business for the best price.
We do this search and create a list of potential strategic buyers, but we add more to it. Our website and other Internet advertising that we do reaches many more potential buyers while keeping the identity of the business confidential. In many cases, these are better strategic buyers because they want to find this type of business to buy.
Contact us to discuss your situation and learn more about how we can help you sell your business with our services.
*A financial buyer is one that will operate the acquired business as a standalone operation. They base an offer on the earnings that the business has historically created.
BayState Business Brokers, 60 Kendrick Street, Suite 206
Needham, MA 02494
T: 617-562-5700 [email protected]