Sales: Why They're Faster and Easier

April 26, 2023

When it comes to selling your business, there are a number of different options available to you. You can sell to a strategic buyer, a financial buyer, or an investor. Of these three options, selling to an investor is often the fastest and easiest way to get a deal done.

Investors Aren't as Picky as Strategic Buyers

Strategic buyers are usually larger companies in the same or similar industry as the company they're acquiring. As a result, they tend to be very picky about the businesses they buy. They want to make sure that the company they're acquiring is a good fit for their existing business and that there are synergies that can be leveraged to make the combined company more successful than either would be on its own.

Investors, on the other hand, are not as picky. They're usually focused on buying companies that have a solid track record of profitability and that they believe have good growth potential. As long as a company meets those two criteria, investors are usually willing to take a chance on it.

Investors Don't Require Due Diligence

Another reason why selling to investors is often faster and easier is that investors don't require due diligence. Strategic buyers, on the other hand, almost always require some level of due diligence before they'll agree to buy a company. This due diligence process can often take months to complete and can delay or even derail a deal altogether.

Investors Are Less Concerned About Price

Investors are also less concerned about price than either strategic or financial buyers. This is because investors are looking at the long-term potential of a company and are willing to pay more for a company that they believe has good growth prospects. Strategic buyers, on the other hand, tend to be more focused on immediate cost savings and are therefore more likely to haggle over price. Financial buyers, meanwhile, are primarily concerned with getting a good return on their investment and may also try to negotiate a lower price.

If you're thinking about selling your business, you might want to consider selling to an investor. Investors typically don't require due diligence and are less concerned about price than either strategic or financial buyers. As a result, selling to an investor is often the fastest and easiest way to get a deal done.