c Benchmark International What You Need To Know About Selling Your Business To A Strategic Buyer

Watching Now

What You Need To Know About Selling Your Business To A Strategic Buyer

Host Dara Shareef

In my last webinar, I walked you through how to successfully navigate a deal with a PE Fund. In this edition, I will detail some of the nuances, benefits, and potential problems associated with selling your business to a strategic buyer. What exactly is a strategic buyer? How do we distinguish a strategic buyer from a financial buyer? How does the due diligence investigation change? How might it impact valuation? What are the impacts post-close?

We will cover a lot of ground during this session. We will look at the financial implications of selling a business to a strategic acquirer. What types of deal structures they prefer, and how those deal components differ from those generally seen in private equity deals. For example, strategic acquirers often have a different view of retained equity than private equity funds and other financial buyers. There are also non-financial differences between their respective approaches. Those differences often present themselves during due diligence. Choosing to be acquired by a strategic buyer may also impact company culture in a more pronounced way than opting for a financial buyer. The two buyer types tend to impact day-to-day operations in different ways.

Strategic acquirers can be great potential exit partners. Given that they operate within the same value chain, they likely will have a profound understanding of your business and market. They are already aware of the opportunities and threats ahead. However, they also may have different operational philosophies and different cultural conventions. In this webinar, we will thoroughly examine strategic buyers and compare and contrast their attributes to those of financial buyers.

Share:
Watch:

Related

News & Articles

Financial Due Diligence: Understanding Both Perspectives

Johann Haasbroek, transaction director at Benchmark International, answers some of the key questions raised by sellers regarding financial due diligence.

Read More
First Impressions Matter: Preparing for the Initial Meeting with Potential Buyers

Are you getting ready to meet potential buyers? Here are some important considerations for that initial meeting.

Read More
Into Legals? Tips for Navigating the Final Stages

Roger Forshaw, director at Benchmark International Manchester, highlights some recurring themes that are key to ensuring a smooth process from entering exclusivity through to completion.

Read More
Completion is Finally Close: What Now, And What Next?

Samantha Tapson, director at Benchmark International, recounts the advice she and her team share with clients when their deal is coming to a close.

Read More
Shaping the Best Research Outcomes: Your Contribution is Vital

Here are five tips on how to shape the best research outcomes to find your ideal buyer.

Read More
The Shareholder Agreement: Your Business Prenup

John Loubser discusses in this article why the Shareholder or Shareholders' Agreement is a 'prenuptial agreement' that business partners should not overlook.

Read More
The Crucial Documents Shaping Your Company Sale

In this article, Will Sloan, Senior Associate at Benchmark International, provides a summary of the key transaction documents a seller will come across in a company sale, along with insights from the experienced Benchmark team.

Read More
Skin in the Game: Navigating Post-Acquisition Stakes

Who should have a vested interest or 'skin in the game' when it comes to an acquisition? The seller who's stepping back? Or the buyer taking charge? Tiaan Smit, director at Benchmark International, discusses this in depth.

Read More
Negotiate to Succeed!

Martin Franz, managing partner at Benchmark International, discusses some basic negotiating tips for business owners looking to sell their company.

Read More
Founder-Owned Businesses Are Attractive M&A Targets

Founder-owned businesses are highly sought after in the M&A market, making them attractive targets for acquisition. Read more below.

Read More