CrownWatermark Business Consultants      

Merger or Acquisition instead of Dissolution

Buyers can be classified to fall into one of two camps:

• Financial Buyers - these suitors typically finance the takeover by taking on debt, which must be repaid through cash flow.

• Strategic Buyers - a firm that sees a synergistic value in the acquisition which allows it to compete more favorably in the marketplace.

Strategic buyers are more likely to pay a premium because if they can absorb your business and reduce per unit overhead costs they can afford it.

Financial buyers who want to ensure that your firm will remain a stand-alone entity will tend to put more pressure on retained employees to produce short-term cash flow, often at the expense of the company's long-term prospects. This difference can be especially important if you finance part of the sales transaction by taking a promissory note.

Potential Buyers

    Competitors
    Customers
    Suppliers
    Family Members
    Partners
    Company Management
    Employees
    Other third-party buyers
    Business Brokers

CrownWatermark can help position your business for sale and put you in touch with other business owners and professionals interested in an acquisition. Call us at 253-279-4067 for a FREE consultation to discuss your exit strategy options.