You will now need to decide what type of buyer you are targeting and what these buyers are likely to be looking for in your business. It will help if we establish some basic concepts and definitions about buyers in trade sales.
Trade sale buyers are usually divided into two groups, called ‘financial’ and ’strategic’ buyers. Financial buyers consist of owner/managers and those wishing to operate the business on their own. Strategic buyers are institutional and other buyers who look to take over, or merge the target business within their own operations.
The strategic buyer classification also applies to what are known as ‘industrial partners’, or a ‘big brother’ from your own industry.
Disposals though a trade sale can be for all, or a majority, or minority part of a business. Minority sales in the UK are often to venture capitalists (known as VCs), or private investors (who are often known as ‘Business Angels’). Majority sales could be to strategic buyers or industrial partners’financial’ and ’strategic’ buyers. Financial buyers consist of owner/managers and those wishing to operate the business on their own. Strategic buyers are institutional and other buyers who look to take over, or merge the target business within their own operations.
The strategic buyer classification also applies to what are known as ‘industrial partners’, or a ‘big brother’ from your own industry.
Disposals though a trade sale can be for all, or a majority, or minority part of a business. Minority sales in the UK are often to venture capitalists (known as VCs), or private investors (who are often known as ‘Business Angels’). Majority sales could be to strategic buyers or industrial partners.
