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Selling a Business to a Strategic Acquirer

14 Mar Selling a Business to a Strategic Acquirer

While there are many different reasons to acquire a business, each buyer has his or her own logic. For a strategic buyer the acquisition is usually about expanding an existing model or platform company that is already in place. For example, a business owner is established in one location and has the infrastructure in place to continue operations, but needs to expand into another market. That owner has the option of building in the new market from the ground up, or he can make an acquisition and take over an organization that is well established and renowned in that particular market.  Such an acquisition may cost more but it also involves less risk and ensures the organization is profitable from day one.

So what does the company looking to make a strategic acquisition look for? Obviously, if the company is looking to expand, it wants another company that has a similar business model. It will also want a company that has the capacity to deal with change, as it will begin to implement its own business model and corporate atmosphere. If there are some employees that are set in their way and unwilling to do things the way that the acquiring company would like them to be done, that is going to be a problem. If they are key employees that need to stay with the company that is going to be another problem because they cannot be replaced as easily.

If your business is one that would be a good fit for a strategic acquirer, you may also want to consider staying with the company and structuring the deal as a sort of merger, rather than an all out acquisition. Sometimes the buyer has a manager that would do well with a promotion that would place him or her over the new company, but often the company needs someone to manage the new branch as the owners continue in their own operations.

Troy Jenkins
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