Understanding the different types of business buyers is essential to formulating your sale strategy. There are four main types:
This is a company that sells products and services that complement or enhance those you sell.
Usually, this is a competitor that’s looking for companies where it can add value to their products and services.
Family and heirs
There are often unique challenges involved in selling a business to family members and heirs, such as who will (or won’t) be able to buy shares, who will occupy positions of leadership, and whether or not the company will be sold at a family discount.
Employees and managers
An internal sale may provide unique planning opportunities through the use of an Employee Stock Ownership Plan, which can help ensure continuity for customers and staff.