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

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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.

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