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

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.

Negotiate to Succeed!

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

Heads of Terms – Striking a Balance Between Thoroughness and Deal Progression

Sam McNamee, director at Benchmark International’s Irish office, explains how to strike a balance between thoroughness and deal progression when dealing with Heads of Terms.

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.

Your Insight, Our Expertise: Help Us Craft a Great Information Memorandum

As we haven't quite mastered telepathy, the power of collaboration remains our greatest ally - read these valuable tips to help us craft a great IM for you.

Cracking the Safe: Locked-Boxes Demystified

What is a locked-box in M&A? Read Will Sloan's article on the subject to crack the safe and demystify the concept.

What Is Seller Financing?

Learn more about seller financing and how it can be beneficial when exiting your business.

How Technology is Streamlining the Deal Process

In this article, we explore the shift to technology in M&A transactions, take a closer look at the different platforms that have emerged to drive these changes, and how Benchmark International uses these platforms to the advantage of our clients.

Knowing Your Buyer

Understanding your buyer is critical to the success of a deal and your ongoing relationships post-completion. Benchmark International will work with you throughout the process to build your buyer knowledge.

Why Should I Sell My Business?

Here are several reasons why you should consider putting your company on the market.