Compete to Exit!

In the mergers and acquisitions marketplace, competition from multiple prospective buyers is an absolute necessity to maximize the sale’s value of an owner’s business. An experienced M&A Advisor will develop a Confidential Information Memorandum (CIM) designed to stimulate competition among potential buyers. The CIM reflects sales and marketing strategies to efficiently, effectively and confidentially attract qualified buyers from two major groups:

  • Financial Buyers – long-term investors; primarily interested in the return that can be achieved from the acquisition.
  • Strategic Buyers – same business or industry; financial condition of the seller may be secondary to complementary attributes.

These groups may include:

  • Private Equity Groups – raise capital, invest to gain influence over operations in pursuit of maximizing return on investment; four to seven-year investment horizon.
  • Operating Companies – same business or industry; seeking new markets, products and services.
  • Individuals – have the resources to invest; willing to examine different types of businesses or industries.

The distinctions between financial and strategic buyers may be numerous and significant; however, persistence may be the most important quality that your M&A Advisor possesses to develop multiple qualified buyers for the sale of your company.