During our steps as brokers in the purchase and sale of businesses, we meet different types of buyers…
The individual
Perhaps an entrepreneur who once owned their business, sold it, and is looking for a new challenge. It can be a professional (accountant, engineer, manager) who has learned his trade in companies and who decides to take the leap to “start making money for himself”.
The strategic
An entrepreneur who already owns his business and who decides to generate growth through acquisitions rather than simply relying on organic growth. Generally seeking to buy competitors or companies in complementary fields to ensure its’ growth either geographically, in product range, or any other synergy.
Investment funds
Organizations that seek to create value in a business. They are often looking for growing companies that demonstrate interesting potential, but lack the resources, money, or know-how to support their growth and develop their full capabilities. These buyers often have, as a strategy, to invest in a target company, but with an “exit” strategy in 7 years, in 10 years. Obviously, these buyers are looking for a return on investment, but they are often willing to invest money and time to create value within the target company.
“Hybrids”
We see more entrepreneurs coming together to make transactions. Their goal: to create value for each partner by pooling the money and skills of each “associate”. This is the principle of the more the merrier. Sometimes they will be backed by venture capital type of money.
Our job, as brokers, is to promote the alignment (“the match”) between the seller and the right type of buyers to achieve a balanced transaction for both parties, knowing that each transaction has its particularities.