There are four basic types of prospective buyers, those looking to buy an existing business:
- The Strategic Acquirer. This type of potential buyer typically pays the most for a company and is motivated by the future earnings potential of the business. The strategic acquirer buys for reasons that may not be purely economic.
- The Corporate-Style Acquirer. This prospective buyer generally focuses on the current value and future potential of the business, with a primary emphasis on earnings.
- The Financial Buyer. With a primary focus on income and on building equity, this type of buyer needs to leverage the purchase price with an emphasis on historic earnings with a high perception of risk.
- The Industry Buyer. The primary focus of this type of buyer, who generally pays the lowest price for a business, is on fixed assets. An industry buyer presumes that he or she will bring all other value.
Which type of buyer will acquire your business? Business Broker Services has more than 7,000 registered buyers, accountants, attorneys, and bankers. Contact us to discuss in more detail marketing your business to all types of buyers.