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 corporate buyers) may have an interest in acquiring your company to expand geographically, to increase their range of products or services, to leverage your brand name and reputation, to access a new client base or for various other reasons. Many U.S. corporations still hold sizable cash reserves. Of the cash available at corporations, more is being used for strategic investment through acquisitions than anything else.
Individual buyers may include wealthy individuals, corporate executives and former business owners. Many buyers are driven to buy a business rather than start a business, theoretically giving them a better chance for success. Most individual buyers have little or no experience in operating the types of businesses they buy. Equity and debt capital for individual buyers come from their own equity funds, family members, financial institutions and seller financing.