Buyers Active in
Today's Marketplace
The current marketplace for private companies is made up, essentially, of four types of acquirers. An outline description of each is as follows:
The Strategic Acquirer
 | typically a large firm, usually a Public Company |
| accustomed to long term planning |
| economic considerations are evaluated, however, reason for |
| acquisition is not always purely economic. |
| acquisition prompted by factors such as establishing new markets. |
The Corporate or Sophisticated Acquirer
| typically comes from a large company background |
| employs "schooled" approach when determining value |
| usually a high net worth individual, a group of individuals, an investor group, or a small Corporation |
| focuses on current and future, rather than past |
| places primary emphasis on capitalization of earnings, and on the ability to finance and leverage a purchase. |
The Financial Buyer
| usually an individual |
| primary focus on income replacement and the opportunity to build equity |
| major emphasis placed on historic and current conditions. |
| case for case, the perception of risk is likely to be higher than that of the strategic or corporate style acquirer. |
The Industry Buyer
| usually from within the same, or affiliated, field as the company. |
| primary focus is on a business' fixed assets. |
| presumes that they will bring virtually all other value to the enterprise.
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