Types of buyers for small businesses<title> <meta NAME="keywords" contents="types of small business buyers, small business buyers, strategic buyers, financial buyers, industry buyers"> <meta NAME="description" contents="Description of the buyers active in today's marketplace for small businesses"> <meta name="Microsoft Border" content="tb, default"> </head> <body><table border="0" cellpadding="0" cellspacing="0" width="100%"><tr><td> <div align="center"> <center><table border="1" cellpadding="0" cellspacing="1" width="852" bordercolor="#0000FF" height="115"> <tr> <td width="1046" bgcolor="#F2F2F2" height="111"><table border="0" width="868" cellspacing="0" cellpadding="0"> <tr> <td bgcolor="#EFEFEF" width="219" bordercolor="#000080" bordercolorlight="#000080" bordercolordark="#000080"> <p align="center" style="margin-top: 0; margin-bottom: 0"><b><font color="#FFFFCC" size="6" face="Bangle"><span style="font-size:12.0pt;font-family:"Times New Roman","serif"; mso-fareast-font-family:Calibri;mso-fareast-theme-font:minor-latin;mso-ansi-language: EN-US;mso-fareast-language:EN-US;mso-bidi-language:AR-SA"></span></font><font color="#000080" size="5">Buy</font><font face="Bangle" size="6" color="#FF0000">Sell</font><font color="#000080" face="Bangle" size="5">Biz</font></b></p> <p align="center" style="margin-top: 0; margin-bottom: 0"><b><font face="Bangle" size="3" color="#FF0000"> </font><i><font face="Bangle" color="#FF0000" size="4">Publications and Network</font></i><u><font face="Bangle" size="3" color="#FF0000"><br> </font> </u></b><font face="Bangle" size="2"><b><i> Resources for Entrepreneurs</i></b></font></p> </td> <td width="521" bgcolor="#EFEFEF" bordercolor="#000080" bordercolorlight="#000080" bordercolordark="#000080"> <p align="center"><b><font face="NewBskvll BT" size="5">Books, Software, Mentors and Network to:</font><font face="NewBskvll BT" size="3"> <br> </font><font face="NewBskvll BT" color="#FF0000" size="4"><i> Find, Value, </i></font> </b><strong> <font face="NewBskvll BT" color="#FF0000" size="4"><i> Buy, Sell or Finance a Private Business <br> </i></font></strong> <font size="2" face="Book Antiqua">All based upon experience gained and lessons learned in selling over 2,000 businesses.</font> <p align="center"><font size="2" face="Book Antiqua"><a href="home.htm"><b>Home</b></a><b> <a href="about_buysellbiz.htm">About us</a> <a href="contact_us.htm">Contact us</a></b></font></td> <td width="112" bgcolor="#EFEFEF" bordercolor="#000080" bordercolorlight="#000080" bordercolordark="#000080"> <p align="center"><font size="1"><b><img border="0" src="TedBurbank.jpg" width="78" height="94"><br> Ted Burbank<br> President</b></font></td> </tr> </table></td> </tr> </table></center> </div> </td></tr></table><table border="0" cellpadding="0" cellspacing="0" width="100%"><tr><td valign="top"> <div align="center"> <center> <table border="0" cellpadding="0" cellspacing="0" width="95%"> <tr> <td width="100%" bgcolor="#EFEFEF"> <p style="margin-left: 20"><b><font color="#000080" size="6"><br> Buyers Active in<br> Today's Marketplace for<br> Small Businesses</font></b></p> <p style="margin-left: 20">by:<i> <a href="abouttb.htm"> Theodore P. Burbank, FCBI</a></i></p> <hr> <p style="margin-left: 20">The current marketplace for private companies is made up, essentially, of four types of acquirers. An outline description of each is as follows: </p> <p style="margin-left: 20"><big><b>The Strategic Acquirer</b></big> </p> <ul> <li> <p style="margin-left: 20">typically a large firm, usually a Public Company</li> <li> <p style="margin-left: 20">accustomed to long term planning</li> <li> <p style="margin-left: 20">economic considerations are evaluated, however, reason for</li> <li> <p style="margin-left: 20">acquisition is not always purely economic.</li> <li> <p style="margin-left: 20">acquisition prompted by factors such as establishing new markets.</li> </ul> <p style="margin-left: 20"><big><dfn><b>The Corporate or Sophisticated Acquirer</b></dfn></big> </p> <ul> <li> <p style="margin-left: 20">typically comes from a large company background</li> <li> <p style="margin-left: 20">employs "schooled" approach when determining value</li> <li> <p style="margin-left: 20">usually a high net worth individual, a group of individuals, an investor group, or a small Corporation</li> <li> <p style="margin-left: 20">focuses on current and future, rather than past</li> <li> <p style="margin-left: 20">places primary emphasis on capitalization of earnings, and on the ability to finance and leverage a purchase.</li> </ul> <p style="margin-left: 20"><big><b>The Financial Buyer</b></big> </p> <ul> <li> <p style="margin-left: 20">usually an individual</li> <li> <p style="margin-left: 20">primary focus on income replacement and the opportunity to build equity</li> <li> <p style="margin-left: 20">major emphasis placed on historic and current conditions.</li> <li> <p style="margin-left: 20">case for case, the perception of risk is likely to be higher than that of the strategic or corporate style acquirer.</li> </ul> <p style="margin-left: 20"><big><b>The Industry Buyer</b></big> </p> <ul> <li> <p style="margin-left: 20">usually from within the same, or affiliated, field as the company.</li> <li> <p style="margin-left: 20">primary focus is on a business' fixed assets.</li> <li> <p style="margin-left: 20">presumes that they will bring virtually all other value to the enterprise. <hr> </li> </ul> <p style="margin-left: 20"><small>A full description is found in <a HREF="in&out.htm">"In & Out of Business . . . Happily"</a></small> </p> <p style="margin-left: 20"><font FACE="Century Schoolbook" size="2"><i><span style="mso-bidi-font-size: 10.0pt; font-weight: normal">Mr. Burbank is President of Lighthouse Financial, LLC and since 1979 he and his associates have </span> consulted with and provided valuation, marketing and sales assistance to more than 2,000 family and private business owners.<span style="mso-bidi-font-size: 10.0pt; font-weight: normal"><span style="mso-spacerun: yes"> </span>He is the author of "In & Out of Business . . . Happily" - "Buying a Business Made Easier" - "VALUware 6.0" Business Valuation Software - "DealMaster 4.0" Business Acquisition Software - "DealMaker docs" Transaction Documentation Software all published by Parker-Nelson Publishing.<span style="mso-spacerun: yes"> </span>In addition he is a contributing author to "Merger and Acquisition Handbook for Small and Mid-Size Businesses" and "Business Valuation Handbook" both published by John Wiley and Sons<span style="mso-spacerun: yes"> </span></span>and has written many articles on business sales and valuations. He has conducted seminars and addressed many trade associations in the US, Canada and abroad. <span style="mso-bidi-font-size: 10.0pt; font-weight: normal">Ted is available for private consultation, valuation and acquisition assignments.<span style="mso-spacerun: yes"> </span>He may be reached by telephone: 508 794-1200 or by email: <a href="mailto:bizval@buysellbiz.com">bizval@buysellbiz.com</a></span></i></font> </p> <p align="left" style="margin-left: 20"> </td> </tr> </table> </center> </div> </td></tr></table><table border="0" cellpadding="0" cellspacing="0" width="100%"><tr><td> <p align="center"><font size="2"><a href="about_buysellbiz.htm">About BuySellBiz</a> </font><a href="terms_of_use.htm"><font size="2">Terms of Use</font></a><font size="2"> <a href="contact_us.htm">Contact us</a><font color="#000080"><a href="NewLinks.htm" target="_blank"><br> Businesses for Sale sites:</a> <a href="webresources.htm">Resources for Fun & Business </a> </font><a href="link_partners.htm" target="_blank">Link Partners </a> <font size="2" face="Century Schoolbook"><font color="#000080"><a href="newsreleasemain.htm">News Releases-</a></font><a href="newsreleasemain.htm">Information for the Press</a> </font><a href="confidential_consultation.htm"><font face="Century Schoolbook" size="2"><br> Confidential Consultation</font></a><b><font face="Century Schoolbook" color="#000080"> </font></b><a href="tradelinks.htm">Want to trade links?</a></font><font color="#6600CC"><font face="Century Schoolbook" size="2"><br> BuySellBiz.com is a division of Parker-Nelson Publishing <br> Copyright Parker-Nelson Publishing 1992 - 2010</font><i><font size="2"><b><br> </b></font></i></font></p> </td></tr></table></body> </html>