Choosing the right M&A firm is crucial for selling your business. While many firms focus primarily on the seller, a truly successful firm also prioritizes building and nurturing valuable buyer relationships.
At Walden, we understand success hinges on our ability to take sellers through a targeted process sale with the most suitable acquirers. This is why we invest significant time and effort in cultivating relationships with potential buyers.
3 Common Types of Business Buyers
The three most common acquirers of businesses we work with at Walden are private equity investors, family offices, and strategic buyers.
- Private equity firms often acquire businesses to improve their performance and resell them within a specific timeframe. In many cases, these firms raise money through limited partnerships. Those typically partners expect a return within three to five years. This incentivizes the private equity firm to make the acquisition and then sell the business to create liquidity—specifically, the capacity to pay the limited partner back within a three to five-year period.
- Family offices, in contrast, usually invest in businesses for long-term growth and stability. These high-net-worth individuals and families often invest in industries they know well. The most common goal is to create a portfolio of companies they will hold for a long time.
- Strategic buyers fall in between the first two categories from an investment duration standpoint. These are companies within the same or similar industries who are seeking to expand their market share, diversify their product offerings, or acquire key technologies.
“A strategic buyer may have more interest in buying at a higher multiple because they’re not buying for a liquidity event or specific return on their investment. If they’re looking at their portfolio of product offerings, they may want to acquire a company in order to expand that product offering, or they may want to diversify the markets they’re in.”
— John Phillips, President, Walden
Building a Strong Network of Valuable Buyer Relationships
At Walden, we actively cultivate these relationships through industry events, prior transactions, conferences, and ongoing communication.
Connecting with buyers in multiple categories empowers our team to match sellers with buyers whose strategic goals and investment horizons align with the seller’s objectives.
Identifying the best fit also simplifies the negotiation process. We can leverage our relationships to secure the most advantageous terms for our clients.
Finally, existing relationships with potential buyers help to facilitate smooth transactions and overcome the complexities of the M&A process efficiently and effectively.
Not every business is going to meet our criteria. We want to work with very solid businesses with strong cash flow models in growing industries. We also look for excellent management—those who can continue to grow even with the change of ownership. We’re very particular about the types of businesses we work with, which in itself makes us an attractive place for buyers to do business.
— John Phillips, President, Walden
The Walden Advantage
Walden’s long-standing reputation for integrity and expertise makes us a preferred partner for both sellers and buyers.
For decades, our in-depth understanding of various industries has allowed us to identify and target the most suitable acquirers. Our successful track record of closing deals also reinforces trust and confidence among sellers and buyers.
Most importantly, we prioritize our clients’ needs and objectives throughout the M&A process, which are always unique. Some are ready to sell their business and retire. Others, however, choose to sell so they can take on a different role within their company.
In any case, choosing an experienced M&A partner with strong buyer relationships is paramount for a successful transaction. At Walden, we prioritize building and maintaining these relationships to ensure our clients achieve their desired outcomes.
Partnering with Walden for your M&A transaction ensures access to a curated network of qualified buyers, expert guidance, and a proven track record of success. We are committed to guiding and supporting clients through every step of the M&A process, from initial valuation to the final closing.
Contact us by filling out the form below to learn more about how Walden can help you achieve your M&A goals.
