Who might buy your business?
If you have a business and are considering selling, you may be interested to know the different types of buyers who might buy your business. Identifying what drives different types of buyers is an integral part of the marketing process of your business. Buyers typically fall into one of the following categories:
These people invest in a private enterprise and do not have a fulltime involvement.
These people are typically competitors in the same industry. They believe that by acquiring a larger customer base they can reduce costs and improve operating efficiencies.
This is known as a ‘management buy out’ (MBO). This is where the management wish to take over the business, therefore raise funds from elsewhere to buy out the company they work for.
Private Equity Funds
These are firms / investment groups whose sole purpose is to purchase companies with strong growth prospects.
These are people looking for a smaller company, which they intend to run as owner managers.
This is where the business is sold or transferred to another family member.
This is where a larger company wishes to make an acquisition for strategic reasons, e.g. obtain new product skills or services they do not currently have.
When selling your business always research the entire process and consider which of the above you feel might be the best route and have the most beneficial outcome when selling your business.