Types of Buyers & Motives For Buying Companies

Zach Dogar, a business broker, explains the different types of buyers, their motivations and what type of business each category of buyer is interested in.  He discusses Private Equity Groups, the different kinds of trade buyers, and others.

Who are the different types of business buyers, and what motivates a business purchase? This is a key question as it is important to understand your target market when selling your company.

Occasionally, businesses are passed on to family and heirs and that’s great if that opportunity exists but more often than not, other types of buyers are sought.

Employee and management buyouts are often vehicles for an exit strategy that may be considered by some business owners. This allows for forward planning and is often a satisfactory outcome for entrepreneurs as well as their staff.

Private buyers can range from first time buyers and sole traders, to private individual investors looking to expand their portfolios. A first time buyer will generally look to purchase a business they can operate hands on whilst an experienced investor will more likely look for a fully managed turnkey operation which they can grow and eventually sell. These types of buyers will largely be motivated to acquire small profitable businesses, or businesses that have the potential to become profitable… Read the article here.