What’s the difference between selling to…

What-is-the-difference-650Strategic Buyers:

Strategic buyers may be direct competitors looking to expand market share or obtain an industry advantage. They sometimes will pay premium values for cumulative gain but may offer weaker valuations if they already possess the industry connections. Premium values reflect anticipated increases in revenues, savings from operation consolidation or other synergistic benefits.

Private Equity Firms:

Private Equity Firms are fast becoming the buyer of choice. Some firms manage funds over US$50 billion. They focus on investing and tracking those investments, and most have no desire to oversee the daily operations of the businesses they own. These investors customize the buyout around the owner’s preferences.

Individual Buyers:

Individual buyers are often a high net worth individual. Typically they retain existing management except for the CEO and other owners. Individual buyers are more likely to look at smaller transactions that fall below the qualifications for both strategic and financial buyers.

Diamond Capital Advisors have relationships with Strategic, Private Equity, and Individual buyers, and we are happy to help determine the best fit for your needs.