06 May Financial Buyers
Financial buyers often come into a business acquisition with a long list of demands. The bottom line for these buyers is that they want maximum leverage. Yet they may be a great fit for a seller who wants to continue to manage his or her company after it has been sold and perhaps retain a minority interest that will grow in value. If the seller is willing to stay and work with financial buyers they often make non-financial provisions that could be important to the seller, such as maintaining the location of the business, retaining key employees, etc. In general, financial buyers are only interested in a business that is able to grow at a good pace and yield enough profits to support the existing management, service the debt, and provide a return on the investment to the new owner.