There are several questions you may be asking yourself or your business brokerage as you look to sell your business, and one of the broadest such concepts is this: What are buyers looking for? And while this is a totally fair question, it’s one that requires a bit more nuance and detail to break down — and one of the most important areas while doing so is understanding the different kinds of business buyers out there.
At Utah Business Consultants, we’re here to help you with every aspect of selling your business in Salt Lake City, from proper valuation through identification of ideal buyers and numerous other areas. What are some of the different kinds of buyers out there, and how can you identify your primary targets and make your business as attractive as possible to them? This two-part blog series will go over several important themes.
First-Time Business Buyers
One notable group of business buyers are those who will be purchasing their very first business. Obviously, this is a major life decision, and one that comes with a great deal of excitement but also some inherent risk. Because of this, first-time business buyers tend to fall into one of two main categories:
- Those Who Are Making a Lifestyle Change: This group of first-time business buyers tends to be doing so for reasons beyond simply making an investment. They may be looking for a change of pace from their current line of work, or they may feel a particular connection to the industry in which the business operates. In any case, this type of buyer is going to want to see a business that they can not only grow and be successful with, but also one that fits in with their goals for a lifestyle change.
- Those Who Are Making an Investment: The other major group of first-time business buyers are those who are looking at the purchase as primarily (or solely) an investment. These buyers may or may not have experience in the space.
While this term can mean a few different things, in the business sale sphere it tends to refer to business investors who purchase businesses within the same (or similar) industry as one another, with the goal of expanding their operations.
Oftentimes, strategic buyers are looking for businesses that will serve as a complementary addition to their existing portfolio — say, a company that provides parts or services to the same customer base. In other cases, they may be looking for a business that gives them a larger footprint in their industry or region.
In part two of our series, we’ll go over some additional buyer types and how they might view your business. For more on this, or to learn about any of our business valuation or business sale services to SLC and nearby clients, speak to our team today.