There are many perspective buyers for your company, all who may have different strategic reasons for acquiring a company.
Firstly, the strategic buyer is making an investment to enhance a competitive position. It maybe that they have a distribution network in place, that by bolting on your product line the result could be a very strong EBITDA quickly.
Another buyer group is what we called “Family offices”. These are buyers that, though individually unique, normally hold their investments for an extended period of time. Some are focused on a particular situation in specific areas of expertise and others family holdings can be more generic whereas they will employ experts in that new particular area of investments and actually be much more “quiet” in their ownership interest. Some family companies are passive this way, but others can be very active, it depends on the “family company”.
Another strategic buyer is the private equity funds or as we called them “PEGS”. This investment fund pools their money and capital to make investment acquisitions that can be very specific or general, depending on the “PEG”. Your company could be considered a “platform” or “bolt-on”. This is where a private equity group makes an acquisition in a particular sector which adds the product or services to a familiar sector which ultimately creates a better return on investment because of efficiency of scale.
There are obviously other types of buyers including well-funded individuals exiting a corporate position and the international buyer who is looking to penetrate a certain market by purchasing an established American company.