Understanding Strategic Buyers in Mergers and Acquisitions

#mergers #corporatelaw #businesslaw
In the Main Street to lower-middle market ($1 million - $25 million), we often deal with three different types of buyers. Each buyer has their own motivations, ways of doing business, and characteristics you should consider when dealing with them while selling your business. So, we're going to cover each of these three types of buyers in the is three-part (go figure) series.
In this video, Brett will introduce you to the mind of the strategic buyer - usually a competitor in your industry. Strategic buyers are usually looking to expand their market share within an industry.
If you're dealing with a strategic buyer looking to buy your business, they are often looking for synergies between your businesses which could lead to a higher selling price. With that said, consider that you'll be opening up your books and letting a competitor under the hood of your business, and that could be concerning should the deal fall through.
_____________________________________________
Have questions? Book a call, and talk to Brett today:
clarity.fm/brettcenkus
_______________________________________________
You can reach Brett through:
clarity.fm/brettcenkus
/ brettcenkus
/ bcenkus
www.cenkuslaw.com
braatenwoods.com
merger-resources.com
_______________________________________________
Brett A. Cenkus has 20+ years of experience in business law, finance, and entrepreneurship. Through Cenkus Law, PC, he provides advice and services for mergers & acquisitions (M&A), securities offerings, founders’ agreements, and other general business law issues.
Through Braaten Woods, LLC, Brett helps business owners in the lower middle market ($2MM - $25MM) position themselves for sale, find buyers, negotiate, and close M&A deals.
Brett also maintains merger-resources.com, a site packed with free articles, videos, checklists, deal diagrams, template contracts, and other tools to help pass M&A knowledge to others.
Brett regularly consults with entrepreneurs and invests his own capital as an angel investor.
From 2010-2013, Brett served as Chief Legal Counsel of a publicly-traded international oilfield services company. From 2001 to 2006, he and a partner founded and built Paragon Residential Mortgage. Bridge Investments acquired Paragon in 2006.
Brett holds a Juris Doctorate from Harvard Law School and a Bachelor of Arts degree in Economics from Messiah College in Grantham, Pennsylvania.
Brett lives in Austin with his wife, Cathryn, and two children. He enjoys reading, squash, classic movies, great food and wine, and the New England Patriots.

[@kanchithakkar8471]

thanks a ton, brett... great content

[@ajo229]

keep em comin!

[@noahsmith6376]

Brett, I've set-up my own boutique capability - and I really appreciate your videos. It reduces the barrier of entry and really helps me think about how to approach a deal and go-to-market.

[@BrettCenkus]

I'm glad you're enjoying the videos, Noah! Thank you for the feedback.

[@devitanmayigorla660]

Hello Mr. Cenkus. I actually have a doubt, hoping that you could explain. Does the buyer have an option to get into an agreement with the Seller, restricting the latter from using any such information provided after accepting the Letter of Intent if the deal is not successful at a later stage?

[@imwhimpy7716]

How and where do I find buyers while keeping the sale private?