6: Buyer Types

In this episode of M&A University, host Jacob Orosz and expert Jim Evanger dive deep into the world of business buyers. They explore seven key buyer types: wealthy individuals, strategic buyers, direct competitors, private equity firms, family offices, employees, and ESOPs. The discussion provides critical insights into each buyer’s motivations, advantages, and potential drawbacks. Entrepreneurs will learn how to identify the most suitable buyer for their business, understand valuation strategies, and navigate the complex landscape of mergers and acquisitions. Whether you’re planning to sell your business or simply want to understand the M&A ecosystem, this episode offers invaluable guidance for business owners looking to maximize their company’s value.

Additional Information

• Topics Covered
  • Introduction to M&A University and Course Overview [0:02]
  • Wealthy Individuals as Buyers [1:22]
  • Strategic Buyers and Synergies [5:49]
  • Advantages and Disadvantages of Selling to Strategic Buyers [10:34]
  • Private Equity Firms as Buyers [13:07]
  • Direct Competitors as Buyers [30:34]
  • Family Offices as Buyers [37:03]
  • Employee Stock Ownership Plans (ESOPs) and Management Buyouts [41:13]
  • Breakdown of Buyer Groups in the Middle Market [47:03]
  • Conclusion and Final Thoughts [50:27]
• Helpful Resources
  • M&A Guide | The 4 Types of Buyers of Businesses
  • Why Do Buyers Disappear When Selling My Business?
  • Selling a Business | How to Screen Individual Buyers
  • M&A Talk Episode: Private: What Buyers and Sellers Need to Know About Each Other
  • M&A Talk Episode: Foreign Buyers Want Your Business