Category Archives: Finding the Right Buyer

Financial Buyer

What Will a Financial Buyer Pay?

What is a financial buyer and what logic drives their approach to price and structure? A financial buyer is one who is buying strictly for a financial return.  Financial buyers include individual investors, who have either saved up or cashed out, and institutional funds such as Venture Capital Funds, for early stage high growth opportunities,…

Best Buyer for Business

How to Select the Best Possible Buyer for your Business

How do you select the best possible buyer for your business? Simply put, companies with an ability to pay and an interest in paying a premium.   Assessing the ability to pay for private companies is not as straightforward as it is for public companies, which have to disclose their financial information to their shareholders (by way of EDGAR in the…

Examples of Acquirers Paying a Premium

5 Examples of Acquirers Paying a Premium

Five Examples of acquirers paying a premium.  What are buyers looking for in acquisition targets?  The objective of an acquisition is to create value.  This is accomplished by improving profitability and/or reducing risk; both enhance earnings quality and drive value.  More specifically, acquisition objectives can include achieving economies of scale or economies of scope, vertical…

Private Equity - a second bite of the apple

A Second Bite at the Apple [the Ideal Private Equity Scenario]

Many owner-entrepreneurs are cautious about exploring the benefits and opportunities Private Equity (“PE”) can bring to a growing business. To summarize some general characteristics. PE investments are typically: –       Control positions ranging from 51% to 100% equity –       Held for five to seven years –       Part of a strategy to grow a strong competitive position in…

Strategic Buyer

What Will a Strategic Buyer Pay?

What will a strategic buyer pay?  Ideally a premium, but what defines a premium? By definition, it is higher than the average price.  But if the market will ultimately determine the price, where do you start? Start With the Notional Value A notional value determination is one in absence of an open market transaction, in…

Buyer List

Constructing a Buyer List

When assembling a buyer list, it does not necessarily need to include immediate competitors.  Sellers will know the reputation of these companies in the marketplace and may not want their legacy in such a company’s hands. It is important to understand all of the objectives/considerations of the seller.  Realizing the most money possible is an…