Buyers of your digital marketing agency come in various shapes and flavors, each with their own agendas, motives and goals. But you can distill buyers into three basic categories. Here’s a look to see which types of buyers align best with YOUR goals to to sell your digital marketing agency:
Three Types of Buyers
- Individual investor
- Private equity group
- Strategic acquirer
Individual investors are individuals who buy a business for their own personal gain. Pros of selling to an individual investor include a potentially quick and simple sales process and the potential for a higher sales price if the buyer is willing to pay a premium for the business. Cons include the potential for a lower sales price if the buyer is not familiar with the industry or if the business is not a good fit for the buyer’s investment portfolio.
Private equity groups are firms that invest in businesses on behalf of a group of investors. Pros of selling to a private equity group include the potential for a higher sales price due to the group’s ability to invest significant capital in the business, as well as the potential for operational and strategic improvements to the business through the group’s experience and resources. Cons include a potentially lengthy and complex sales process, as well as the potential for significant changes to the business following the acquisition.
Strategic acquirers are companies that buy businesses to expand their own operations or product offerings. Pros of selling to a strategic acquirer include the potential for a higher sales price due to the acquirer’s ability to generate additional revenue and cost savings through the acquisition, as well as the potential for ongoing business relationships and opportunities following the sale. Cons include a potentially lengthy and complex sales process, as well as the potential for significant changes to the business following the acquisition.
Weighing which option works best for you will depend on what you want and hope for your business after you leave. Using complete generalizations (because each individual case is obviously different) the Individual Investor option is probably best if you are looking to have your staff and employees continue working in their jobs while the Private and Strategic Investors are less likely to retain your people. Again, it may or may not be a factor for you OR the buyer but just keep tha in mind.
