Greetings!

I have come to realize that many business owners, as well as their advisors, often are not aware of the broad scope of possible buyers of a business with sales of between $2 and $50 million. An employee or competitor may come quickly to mind but this is just the tip of the iceberg when it comes to potential buyers. I have prepared a short summary of the potential buyer types a private business owner is well advised to at least consider if he or she is selling a business.

Best wishes for a good year in 2011!

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WHO BUYS PRIVATE BUSINESSES WITH VALUES UNDER $20M?

When a small business owner is selling, knowing a little about the typical buyers may be helpful in negotiations.

Small Business are usually companies with annual revenues of $2 to $50 million and operate in some niche of their market. The four main classes of outside buyers for these businesses are:

- Competitors

- Entrepreneurial buyers

-Corporate Buyers

- Private Equity Firms

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It's hard to say upfront which type of buyer would be the best for a specific business. The best advice I can give a business seller is to work with all four groups while maintaining full confidentially. This may necessitate excluding competitors until the very end. With a proper confidentiality/nondisclosure agreement in place, a seller can work with reasonable confidence with the other three groups. In any case, working with a business broker such as Beacon, a seller can approach multiple buyer possibilities and have access to the private equity market, while maintaining confidentiality in order to procure the best deal available.

If you are interested in more information Please contact Beacon.