One of the key duties of a manufacturing business broker is to match your business with the right kind of buyer. The choice of buyer mostly depends on your size and type of business as well as your preferences as the owner. At So-Cal Business Brokers we want to help you sell your business and guarantee that it continues to thrive under the new owner. That is why matching sellers with the right buyers is what we do best. However, for you to find the right buyer you must first learn about the different types of buyers you will be dealing with.
Financial buyers
These are buyers whose main interest is the cash flow of your business. They purchase businesses for the return they stand to achieve and then exit later on. When selling to a financial buyer you should be prepared to spend more time on your financial statements because your business in this case will be valued based on its history of consistent earnings and more so earnings growth. If your business has a great cash flow, then our manufacturing business brokers will recommend you reach out to financial buyers.
Strategic buyers
These buyers are interested in your business for their own long-term goals that they have with pre-existing, separate business. These buyers may purchase your business so as to realize their goals of vertical expansion (acquire your suppliers and/or customers), horizontal expansion (break into a new market), eliminate competition or simply to strengthen their weaknesses (manufacturing, advertising, technology, research and development). Based on your vision for your business, our manufacturing business broker can recommend you to strategic buyers.
Individual buyers
It is easier to own a running business than it is to build on from the ground up. More and more entrepreneurs are aware of this and tend to buy existing businesses instead of building one from scratch. There are so many wealthy individuals who would love to replace you as the operator and owner of the business. They can buy your business to run on full time or part time basis.
Private equity firm
Most small business owners are not aware of this option. These are firms that raise capital from investors who have a longer investment time horizon such as university endowments, insurance companies, pension funds, and high net worth families.
Not every buyer out there will be ideal for you. Our job at So-Cal Business Brokers is to match you with the best buyer so as to ensure you sell fast and for the best possible price. Contact us today and take advantage of our free consultation.