When an owner decides to sell their business, one of the most important decisions is who they sell it to.
Different buyers can have very different objectives.
A trade buyer may be looking for strategic synergies.
A financial investor may have a defined investment horizon.
A long-term owner may be focused on owning and developing the business for many years.
There is no universally correct answer.
The right buyer depends on what the owner wants the next chapter to look like.
𝐖𝐇𝐀𝐓 𝐈𝐒 𝐓𝐇𝐄 𝐁𝐔𝐘𝐄𝐑 𝐓𝐑𝐘𝐈𝐍𝐆 𝐓𝐎 𝐀𝐂𝐇𝐈𝐄𝐕𝐄?
This is one of the first questions an owner should ask.
Is the buyer interested in expanding into a new market?
Combining the business with an existing operation?
Improving performance?
Building a larger group?
Or simply owning a good business for the long term?
Understanding the buyer’s motivation can tell an owner a great deal about what may happen after completion.
𝐖𝐇𝐀𝐓 𝐖𝐈𝐋𝐋 𝐇𝐀𝐏𝐏𝐄𝐍 𝐓𝐎 𝐓𝐇𝐄 𝐁𝐔𝐒𝐈𝐍𝐄𝐒𝐒?
An owner who has spent decades building a company may understandably want to know what happens next.
Will the brand remain?
Will employees stay?
Will customers receive the same level of service?
Will investment be made?
Will the culture change?
These questions deserve clear answers.
𝐓𝐇𝐄 𝐇𝐈𝐆𝐇𝐄𝐒𝐓 𝐏𝐑𝐈𝐂𝐄 𝐌AY 𝐍𝐎𝐓 𝐀𝐋𝐖𝐀𝐘𝐒 𝐁𝐄 𝐓𝐇𝐄 𝐁𝐄𝐒𝐓 𝐎𝐔𝐓𝐂𝐎𝐌𝐄
Price is obviously important.
For many owners, however, there is a point where the decision becomes about more than money.
A slightly different financial outcome may be acceptable if the owner believes the buyer is the right steward of the business they have spent years building.
𝐓𝐑𝐀𝐍𝐒𝐈𝐓𝐈𝐎𝐍 𝐌𝐀𝐓𝐓𝐄𝐑𝐒
The period immediately following a transaction can be important.
Some owners want a clean break.
Others prefer to support a transition and transfer knowledge, relationships and responsibilities over time.
Neither approach is automatically better.
The important thing is that the structure reflects the needs of the owner and the business.
𝐋𝐎𝐍𝐆–𝐓𝐄𝐑𝐌 𝐎𝐖𝐍𝐄𝐑𝐒𝐇𝐈𝐏 𝐂𝐀𝐍 𝐎𝐅𝐅𝐄𝐑 𝐀 𝐃𝐈𝐅𝐅𝐄𝐑𝐄𝐍𝐓 𝐏𝐄𝐑𝐒𝐏𝐄𝐂𝐓𝐈𝐕𝐄
A long-term owner can take a different view of time.
Instead of focusing primarily on a defined exit horizon, the focus can be on building a stronger, more resilient business over many years.
That can allow investment decisions to be made with a longer perspective.
At Sunliner Group, we believe the relationship between an owner and their buyer should be built on more than valuation.
𝐓𝐑𝐔𝐒𝐓, 𝐂𝐎𝐍𝐓𝐈𝐍𝐔𝐈𝐓𝐘 𝐀𝐍𝐃 𝐀 𝐒𝐇𝐀𝐑𝐄𝐃 𝐕𝐈𝐒𝐈𝐎𝐍 𝐅𝐎𝐑 𝐓𝐇𝐄 𝐅𝐔𝐓𝐔𝐑𝐄 𝐌𝐀𝐓𝐓𝐄𝐑 𝐓𝐎𝐎.
Because when you have spent years building something, choosing who takes it forward is an important decision.
𝐁𝐔𝐈𝐋𝐃𝐈𝐍𝐆 𝐁𝐔𝐒𝐈𝐍𝐄𝐒𝐒𝐄𝐒. 𝐂𝐑𝐄𝐀𝐓𝐈𝐍𝐆 𝐄𝐍𝐃𝐔𝐑𝐈𝐍𝐆 𝐕𝐀𝐋𝐔𝐄.
