Why is Finding the Right Buyer so Important?

For many companies, the most important part of the M&A process is finding the right buyer. Your company is unique and demands that you are introduced to the right investors that share your vision and goals for the future. The proper investor for your company will usually fall in the category of either a strategic acquisition or private equity investor.

A strategic buyer usually takes the form of a company in the same business who is looking to acquire companies that complement their own. The main goal of this type of acquisition is to realize increased revenues and lower costs through the synergies created through the M&A process. For this reason, strategic valuations will usually get a premium price valuation in order to close a deal. The value in this deal comes from the strategic advantages that are come with the acquisition.

A financial buyer, usually a private equity firm, participates in the M&A process in order to recognize returns they would be able achieve by helping companies flourish. They generally have access to resources that will allow them to rapidly scale your company with the goal to eventually sell the company at a higher valuation. They are interested in working closely with the current owners after the transaction to maximize the potential of your company. A company with strong financial statements that demonstrates a history of growth and consistent earnings is often more attractive for this type of acquisition.

At Vermilion Rock Advisors, we seek to help you achieve your visions for the future. We are extremely interested in helping you find the type of buyer that will fit your goals and expectations. We work with over 2,000 potential buyers in order to find the right fit for your company. We understand the importance and legacy you have created through your company and we look forward to helping you increase the value you have created.