Mon, 5 April 2021
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
In selling a business there are two types of buyers: strategic buyers and financial buyers.
Strategic buyers look for companies that can enhance their current business.
Financial buyers look for companies that generate cash.
Their motivations and careabouts are different.
The strategic buyer will look to see how closely the acquisition is to the buyer’s business and how much work it will take to integrate it.
The financial buyer will look at the financials to determine the cash flow and how long it may sustain.
A company seeking a buyer will need to develop a relationship with CEO and VP-level contacts in the industry. This can be done through introductions, conferences, and other events.
The company may also find an avenue through the corporate development team in some cases.
Bankers are also potential conduits to potential acquirers.
The board of directors of the acquiring company may also provide an entry into the company.
Finding the buyer takes time and building a rapport takes even more time.
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Category:general -- posted at: 6:00am CDT