Selling Your Business – What’s In It For The Buyer?

Why would anyone want to buy your business?

That’s not a question you want to ask when you’re ready to sell.

When it comes to strategic acquirers, they will have distinct motivations behind their interest in your company.

So what exactly are those motivations?

+ Taking Out The Competition – to grab market share and increase their pricing power.

+ Acquiring Talent – your personnel can be just as valuable as your customers.

+ Adding Capability – IP, technology and product portfolio to accelerate their own roadmap.

+ Revenue Growth – adding predictable cash flow to safeguard their future growth and deliver a higher valuation.

+ Cost Efficiencies – to drive economies of scale.

+ Vertical Integration – greater control up or down the value chain to increase margins.

+ Diversification – a broader portfolio to minimise their risk exposure.

If you want to maximise the valuation of your business – you need to factor in the motivations of the acquirer into your own strategic decision making – many months before you exit…

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