In this episode of Today’s Business Radio Executive Summary, host Tom Lyons interviews Amanda Luebeck from Fidelis Advisors, a merger and acquisition advisory firm. They discuss the types of buyers Amanda targets when marketing a business for sale. Generally, buyers fall into two categories: individual/industry buyers and private equity firms, each offering unique advantages.

Amanda emphasizes the importance of aligning a seller’s objectives with a buyer’s goal. Buyers typically prioritize growth potential, such as a skilled workforce, new products, or expandable sales channels. Private equity groups often integrate businesses into a broader growth strategy, benefiting both owners and employees, while also leveraging their resources to boost revenue or profitability.

Funding advantages vary by buyer type. Family offices and private equity groups, being well-capitalized, can offer strong cash payments and flexible deal structures, such as retaining equity for the seller’s family or including earnout payments. Whether one buyer type is better depends on the specific situation—key factors include industry knowledge and financial capability for a successful sale.