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><table border="1" cellpadding="0" cellspacing="1" width="784" bordercolor="#0000FF" height="116"> <tr> <td width="978" bgcolor="#F2F2F2" height="112"><table border="0" width="868" cellspacing="0" cellpadding="0"> <tr> <td bgcolor="#EFEFEF" width="229" bordercolor="#000080" bordercolorlight="#000080" bordercolordark="#000080"><b><font color="#FFFFCC" size="6" face="Bangle"> </font><font face="Bangle" size="5"><span style="font-family: Times New Roman; mso-fareast-font-family: Times New Roman; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA"><font color="#FFFFCC"> </font></span><font color="#000080">Buy</font></font><font face="Bangle" size="6" color="#FF0000">Sell</font><font color="#000080" face="Bangle" size="5">Biz.</font><font face="Bangle" size="3" color="#FF0000">com</font></b></td> <td width="623" bgcolor="#EFEFEF" bordercolor="#000080" bordercolorlight="#000080" bordercolordark="#000080"> <p align="center"><font color="#000080"><b><font face="NewBskvll BT" size="5">Businesses for Sale by Owner </font><font face="NewBskvll BT" size="3">or FSBO</font><font face="NewBskvll BT" color="#FFFF00" size="4"><br> </font><font face="NewBskvll BT" size="3">plus Information and Resources for<br> Valuing, </font> </b><font face="NewBskvll BT" size="3"><strong> Buying, Selling and Financing a Private Businesses </strong></font></font></td> </tr> </table><table border="1" width="100%" height="37" cellspacing="0" bordercolor="#0000FF"> <tr> <td width="20%" valign="middle" align="center" bordercolor="#0000FF" bordercolorlight="#FF00FF" bordercolordark="#FF00FF" bgcolor="#00FFFF" height="14"><b><a href="home.htm"><font size="2">Home</font></a></b></td> <td width="20%" valign="middle" align="center" bordercolor="#0000FF" bordercolorlight="#FF00FF" bordercolordark="#FF00FF" bgcolor="#00FFFF" height="14"><b><font size="2"><a href="fsbodataentry.htm">Post a Business <br> for Sale - <i>Free</i></a></font></b></td> <td width="20%" valign="middle" align="center" bordercolor="#0000FF" bordercolorlight="#FF00FF" bordercolordark="#FF00FF" bgcolor="#00FFFF" height="14"><font size="2"><b><a href="main_fsbos.htm"> Businesses for Sale by Owner </a></b></font></td> <td width="20%" valign="middle" align="center" bordercolor="#0000FF" bordercolorlight="#FF00FF" bordercolordark="#FF00FF" bgcolor="#00FFFF" height="14"><b><font size="2"><a href="softwcombinationspec.htm">Resources for the </a><br> <a href="softwcombinationspec.htm">Business Broker </a></font></b></td> <td width="21%" valign="middle" align="center" bordercolor="#0000FF" bordercolorlight="#FF00FF" bordercolordark="#FF00FF" bgcolor="#00FFFF" height="14"> </td> </tr> <tr> <td width="20%" valign="middle" align="center" bordercolor="#0000FF" bordercolorlight="#FF00FF" bordercolordark="#FF00FF" height="29" bgcolor="#EFEFEF"><b><font color="#000080">Books, Articles and Software to:</font></b></td> <td width="20%" valign="middle" align="center" bordercolor="#0000FF" bordercolorlight="#FF00FF" bordercolordark="#FF00FF" height="29" bgcolor="#EFEFEF"><b><a href="helpfinddir.htm"><font size="2">Help Find a Business</font></a></b></td> <td width="20%" valign="middle" align="center" bordercolor="#0000FF" bordercolorlight="#FF00FF" bordercolordark="#FF00FF" height="29" bgcolor="#EFEFEF"><b><a href="hlpvaldir.htm"><font size="2">Value a Business</font></a></b></td> <td width="20%" valign="middle" align="center" bordercolor="#0000FF" bordercolorlight="#FF00FF" bordercolordark="#FF00FF" height="29" bgcolor="#EFEFEF"><b><a href="hlpbuydir.htm"><font size="2">Buy a Business</font></a></b></td> <td width="21%" valign="middle" align="center" bordercolor="#0000FF" bordercolorlight="#FF00FF" bordercolordark="#FF00FF" height="29" bgcolor="#EFEFEF"><b><a href="helpselldir.htm"><font size="2">Sell a Business</font></a></b></td> </tr> </table></td> </tr> </table></td></tr></table><table border="0" cellpadding="0" cellspacing="0" width="100%"><tr><td valign="top"> <p><b><font color="#000080" size="6">Buyers Active in<br> Today's Marketplace for<br> Small Businesses</font></b></p> <p>by:<i> <a href="abouttb.htm"> Theodore P. Burbank, FCBI</a></i></p> <hr> <p>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><big><b>The Strategic Acquirer</b></big> </p> <ul> <li>typically a large firm, usually a Public Company</li> <li>accustomed to long term planning</li> <li>economic considerations are evaluated, however, reason for</li> <li>acquisition is not always purely economic.</li> <li>acquisition prompted by factors such as establishing new markets.</li> </ul> <p><big><dfn><b>The Corporate or Sophisticated Acquirer</b></dfn></big> </p> <ul> <li>typically comes from a large company background</li> <li>employs "schooled" approach when determining value</li> <li>usually a high net worth individual, a group of individuals, an investor group, or a small Corporation</li> <li>focuses on current and future, rather than past</li> <li>places primary emphasis on capitalization of earnings, and on the ability to finance and leverage a purchase.</li> </ul> <p><big><b>The Financial Buyer</b></big> </p> <ul> <li>usually an individual</li> <li>primary focus on income replacement and the opportunity to build equity</li> <li>major emphasis placed on historic and current conditions.</li> <li>case for case, the perception of risk is likely to be higher than that of the strategic or corporate style acquirer.</li> </ul> <p><big><b>The Industry Buyer</b></big> </p> <ul> <li>usually from within the same, or affiliated, field as the company.</li> <li>primary focus is on a business' fixed assets.</li> <li>presumes that they will bring virtually all other value to the enterprise. <hr> </li> </ul> <p><small>A full description is found in <a HREF="in&out.htm">"In & Out of Business . . . Happily"</a></small> </p> <p><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 - "DealMaker 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> <FORM ACTION = "cgi-bin/formmail.pl" METHOD ="POST"><input type=hidden name="recipient" value="bizval@buysellbiz.com"> <b><p>Please contact me regarding your services </b></p> <p>Business Valuation<b> </b><input TYPE="checkbox" NAME="Business Valuation" VALUE="on">Help me sell myself <input TYPE="checkbox" NAME="help me sell" VALUE="on">Prepare for Sale <input TYPE="checkbox" NAME="prepare for sale" VALUE="on"><br> Sell my business <input TYPE="checkbox" NAME="sell my business" VALUE="on">Buy another business <input TYPE="checkbox" NAME="buy another biz" VALUE="on">Acquisition funding <input TYPE="checkbox" NAME="acquire funding" VALUE="on"> </p> <p>Name: (First and Last) <input TYPE="text" NAME="Name" SIZE="40"> </p> <p>Address <input TYPE="text" NAME="Address" size="20"> City <input TYPE="text" NAME="City" size="20"> State <input TYPE="text" NAME="State" SIZE="2"> </p> <p>Zip Code <input TYPE="text" NAME="Zip" SIZE="6"> Telephone # <input TYPE="text" NAME="Telephone" SIZE="10"> </p> <p>Email <input TYPE="text" NAME="Email" SIZE="30"> </p> <p>Comments:<br> <textarea NAME="Comments" ROWS="6" COLS="53"></textarea> </p> <p><input TYPE="reset"> <input TYPE="submit" value="Send"> </p> </form> </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 - 2008</font><i><font size="2"><b><br> </b></font></i></font></p> </td></tr></table></body> </html>