By the MyBusinessFSBO.com staff
The following is a breakdown of the types of potential buyers that you
may encounter during the sales process:
- Private Buyers or Individuals (estimated 75% of all buyers)
- Corporate Buyers (estimated 25% of all buyers)
Private buyers are generally your more financially motivated group
while the Corporate buyer is looking for a strategic investment. In
general, strategic buyers will have reasons over and above immediate
financial income when considering the purchase of a business, therefore
the Corporate buyer will tend to pay a higher price for your business.
Private buyers generally fall into one of these categories:
- Individual
- Partners
- Husband/Wife team
- Employees
Corporate buyers generally fall into one of these categories:
- Your competitors
- Diversification seekers
- Existing suppliers to the business
- Customers of the business
Most Private buyers primary reason for purchasing a business is to
make money, however there may also be other reasons such as:
- Buying a job
- Acquiring an attractive lease or real estate
- Prestige of being prominent in the community
- Eliminating a competitor
- Buying a hobby or something to stay busy in retirement
- Self-fulfillment
- Seeking an opportunity for a child or family member
Accurately determining buyer motivation is a key component of a
successful negotiation process. |
