{"id":1763,"date":"2020-09-01T11:37:44","date_gmt":"2020-09-01T17:37:44","guid":{"rendered":"https:\/\/www.sunbeltnetwork.com\/lake-charles-la\/?p=1763"},"modified":"2024-06-18T18:50:25","modified_gmt":"2024-06-18T18:50:25","slug":"5-types-of-prospective-business-buyers-pros-and-cons-list","status":"publish","type":"post","link":"https:\/\/www.sunbeltnetwork.com\/lake-charles-la\/5-types-of-prospective-business-buyers-pros-and-cons-list\/","title":{"rendered":"5 Types of Prospective Business Buyers: Pros and Cons List"},"content":{"rendered":"

When planning for your transaction, you\u2019ll want to consider the different buyer scenarios you\u2019re presented carefully. The buyer pool for most organizations can be very diverse. Plus, different kinds of buyers pose different implications. Follow along as we discuss the pros and cons of working with different types of prospective business buyers.<\/strong><\/p>\n

As you receive offers, you need to develop an understanding of the parties\u2019 background and their intent to buy. Check out five of the more common types of prospective buyer profiles you may encounter.<\/p>\n

1. Individual Buyer<\/strong>
\nOur business brokers frequently come in contact with individual buyers who aren\u2019t affiliated with an external organization. This scenario can be advantageous for several reasons. For one, these parties have fewer strings attached, making them easier to work with than an existing business. They also typically have years of experience in their field. However, nearly 48% of small business buyers are also first-time buyers. As a result, they may require additional training and assistance from the current business owner through the transition.<\/p>\n

2. Business Competitor<\/strong>
\nExisting companies often buy out their competitors, which allows them to expand in their industry. This could be an excellent opportunity for a business owner looking to sell with little-to-no involvement following the transaction. These potential buyers usually already have an understanding of your general operations, so it takes much less time to get them up to speed. Keep in mind that if you do pursue this arrangement, you will want to retain business broker services as many unique challenges can arise.<\/p>\n

3. Synergistic Buyer<\/strong>
\nSynergistic parties are another type of buyer looking to expand their current operations. These buyers aren\u2019t direct competitors, but more so companies in-line with your industry. They are interested in similar businesses that would be complementary to what they currently offer. A major plus of working with a synergistic buyer is that they are often more willing to pay a higher purchase price than other groups that need more financial backing. One disadvantage we see in this arrangement is that they typically don\u2019t have the need to retain a lot of the seller\u2019s current personnel, so downsizing is common.<\/p>\n

4. Financial Buyer<\/strong>
\nFinancial buyers are interested in the return they can receive by investing in a business. You may want to consider this arrangement if you are looking to maintain some involvement with your organization but do not have the capabilities, funds, or interests to continue serving as the business owner. Financial buyers aren\u2019t often your high-ticket investors; they may counter with a lower asking price to generate more significant cash flow for the business. You want to work with a business intermediary through these transactions, as they require a high level of detailed planning.<\/p>\n

5. Family Member<\/strong>
\nMany small business owners choose to sell to a family member. Often, their successor is already involved with their operations and has received a great deal of training. Having this familiarity is of great benefit to a potential buyer, plus they can rely on their family member for support as time goes on. If this sounds ideal to you, our recommendation is to prepare this person as much as possible to minimize disruptions. If they aren\u2019t ready for the responsibility, your business can suffer.<\/p>\n

As the nation\u2019s leading business brokerage network, our offices have encountered many different types of buyers. Sunbelt Business Brokers can help match you with the right buyer based on your personal needs! If you\u2019re ready to sell, contact your local Sunbelt office for more information!<\/p>\n

Brian Knoderer
\nBrian Knoderer is the President of Sunbelt Business Brokers. He has over 20 years of experience as a business owner and managing business transactions. As a seasoned intermediary, Brian has successfully represented companies in a broad range of industries helping business owners achieve their desired exit strategy or growth initiative.
\nBrian is also co-owner of Sunbelt Indiana and Managing Director of MMI Capital Partners, a franchisor focused investment banking firm.
\nPreviously Brian was involved in several entrepreneurial ventures as well as having held corporate roles in Franchise Development for Prime Hospitality and Choice Hotels.
\nBrian is a graduate of Ball State University with a degree in Management Information Systems and earned his MBA from Butler University. He has received the Certified Merger & Acquisition Advisor (CM&AA) designation, holds both the Series 7 \u2013 General Security License and the Series 63 \u2013 Uniform Securities Licenses, and is a licensed Real Estate Broker. He has been affiliated with several organizations including the Entrepreneur Organization, a Member of the International Business Brokers Association, Venture Club, and a Board Member of The Entrepreneur Institute.<\/p>\n","protected":false},"excerpt":{"rendered":"

When planning for your transaction, you\u2019ll want to consider the different buyer scenarios you\u2019re presented carefully. The buyer pool for most organizations can be very diverse. Plus, different kinds of buyers pose different implications. Follow along as we discuss the pros and cons of working with different types of prospective business buyers. As you receive […]<\/p>\n","protected":false},"author":16,"featured_media":11728,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[48,17],"tags":[],"class_list":["post-1763","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-general"],"acf":[],"yoast_head":"\n5 Types of Prospective Business Buyers: Pros and Cons List - Sunbelt of Lake Charles<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"5 Types of Prospective Business Buyers: Pros and Cons List - Sunbelt of Lake Charles\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.sunbeltnetwork.com\/lake-charles-la\/5-types-of-prospective-business-buyers-pros-and-cons-list\/\" \/>\n<meta property=\"og:site_name\" content=\"Sunbelt of Lake Charles\" \/>\n<meta property=\"article:published_time\" content=\"2020-09-01T17:37:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-18T18:50:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.sunbeltnetwork.com\/lake-charles-la\/wp-content\/uploads\/sites\/101\/2023\/05\/business-liabilities.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Don Pippin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Don Pippin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.sunbeltnetwork.com\\\/lake-charles-la\\\/5-types-of-prospective-business-buyers-pros-and-cons-list\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.sunbeltnetwork.com\\\/lake-charles-la\\\/5-types-of-prospective-business-buyers-pros-and-cons-list\\\/\"},\"author\":{\"name\":\"Don Pippin\",\"@id\":\"https:\\\/\\\/www.sunbeltnetwork.com\\\/lake-charles-la\\\/#\\\/schema\\\/person\\\/4fb06be32e100a88d89e8b76862333fb\"},\"headline\":\"5 Types of Prospective Business Buyers: Pros and Cons List\",\"datePublished\":\"2020-09-01T17:37:44+00:00\",\"dateModified\":\"2024-06-18T18:50:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.sunbeltnetwork.com\\\/lake-charles-la\\\/5-types-of-prospective-business-buyers-pros-and-cons-list\\\/\"},\"wordCount\":778,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.sunbeltnetwork.com\\\/lake-charles-la\\\/5-types-of-prospective-business-buyers-pros-and-cons-list\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.sunbeltnetwork.com\\\/lake-charles-la\\\/wp-content\\\/uploads\\\/sites\\\/101\\\/2023\\\/05\\\/business-liabilities.jpeg\",\"articleSection\":[\"Blog\",\"General\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.sunbeltnetwork.com\\\/lake-charles-la\\\/5-types-of-prospective-business-buyers-pros-and-cons-list\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.sunbeltnetwork.com\\\/lake-charles-la\\\/5-types-of-prospective-business-buyers-pros-and-cons-list\\\/\",\"url\":\"https:\\\/\\\/www.sunbeltnetwork.com\\\/lake-charles-la\\\/5-types-of-prospective-business-buyers-pros-and-cons-list\\\/\",\"name\":\"5 Types of Prospective Business Buyers: Pros and Cons List - 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