The Strategic Exit
If you are considering a sale of your business in the near future, strategic buyers, or corporate acquirers, must be at the top of your prospective buyer’s list. Strategic buyers operate in the same industry or business and may include competitors, suppliers, or clients of your company. The main objective of strategic buyers is to find companies whose products or services complement or integrate seamlessly with their established enterprise for long-term value creation.
Motivated by economies of scale, new product lines, new geographical markets, more channels of distribution, or other synergistic opportunities, strategics are highly qualified buyers and among the very best purchasers of middle market businesses. AND, they pay more! Synergies and integration capabilities of the two entities creates additional value. Furthermore, you exit with the transaction, and overlapping costs are eliminated. With a deep understanding of your business, strategic buyers also ensure an efficient transaction process and timely close. Lastly, long-term clients win with new product and service offerings.
It’s not uncommon for strategic buyers to act like financial buyers and make acquisitions to boosts top-line revenues and earnings, or for financial buyers with portfolio companies in your space to make strategic add-on acquisitions. An experienced M&A Team will understand the different buyer motivations and help facilitate a successful transaction.