Mergers & Acquisitions: Buying a Business from the Buyers Perspective

What Buyers are Looking for When Buying a Business Strong Profits / Cash Flow (the company is managing expenses) Recurring Revenue Stream (loyal customers, sales contracts, growth markets) Strong Management Team (2nd or 3rd in command can run the company) Unique Products and Services (real differentiators, make vs. resell, IP) Credibility (goodwill, reputation, customer satisfaction)…

Why should I use an M&A Advisor?

Buying or selling a business is one of the most important financial decisions you will make. An M&A Advisor has the training and expertise to guide you through the process in a comfortable and efficient manner. M&A Advisors are team players team players who will coordinate the efforts of your professional advisors, such as attorneys…

Are competitors the best buyers?

Typically, competitors are not the best buyers. They already have much of your infrastructure and knowledge of the industry. They are less likely to pay a higher premium for skills or assets they already possess. More often than not, a competitor is not prepared to pay you the highest price on the best terms

Should I tell my managers of my intention to sell?

This is an individual decision that depends on your circumstances. At the same time, there is an optimum way to sell your business. Ideally, your managers are aware of your intention to sell. The buyer feels more comfortable if the management team has embraced your intention to sell. But the timing is a delicate decision…

When should I develop an exit strategy?

The sooner the better. The ideal time to develop an exit strategy for selling your business is when you start or purchase a business. You may find that puzzling, but a business is an investment of your time, your money, and your blood, sweat and tears. The end result is to have a gain on…

Who might buy my company?

Financial buyers typically are looking to acquire your company and keep the existing management team in place. They will provide capital for growth and board-level support. Financial buyers typically have size ranges that they target, and are looking to acquire businesses with very strong profits and cash flow. Strategic buyers (also known as company or…

Can my accountant sell my business?

Although an accountant can provide information pertaining to the financial aspects of your business, their expertise does not include selling businesses. Accountants do not have access to buyers or the knowledge specific to the process of selling a business. We prefer to work closely with your accountant to determine key factors when valuing your business.…