Many business owners assume they’ll sell their company to either a strategic buyer or a private equity firm. While these comprise the majority of buyers in the middle market, there’s another buyer whose presence in M&A is increasingly felt – the family office.

Independent sponsors often come from the same backgrounds as private equity investors or investment bankers but prefer to invest on a deal-by-deal basis, as opposed to through a fund structure such as private equity (PE).

By educating yourself about the different types of buyers in the marketplace, you can identify which type of buyer is most likely to purchase your business. This is essential to knowing what your business may be worth and developing a marketing strategy to sell your company.

For small businesses, we rarely see “investor deals” happen. For this reason, it makes sense to heavily screen these deals so that you don’t waste your time. We recommend communicating directly with the investor as if they were one of the purchasers because, well, they are.

One of the most common pathways to gain U.S. citizenship is through the purchase of a business. A foreign-born buyer also has the option of obtaining U.S. citizenship by starting a business, though the majority feel that acquiring an existing business is a safer investment.

Discussing the sale with your employees can be one of the most difficult and sensitive issues you will face during the sale process. In most cases, employees do not have the financial wherewithal to purchase your business, and it may be best to avoid these conversations.

Keeping the details of your business secure and confidential is critical at any time, especially when a competitor approaches you.