f you plan on selling your business, it will help you to understand the different types of buyer. Each buyer who inquires will have their own unique reason to want to buy. By talking with the buyer, understanding their needs and then placing them in one of the categories below, will help you understand what they are looking for so you are better prepared to discuss and negotiate the transaction.
Individual Buyer
This is generally one person with good financial resources and background or experience for managing and leading a particular business in a particular industry. This type of buyer is usually looking for a particular business that is financially healthy. They are looking for a return on their investment and some flexibility in lifestyle choices. They also believe they can buy and at least maintain the current performance of the business or take it to a higher level.
Corporate Executive
This is a buyer who has many years of service with a large corporation and has concerns that downsizing may occur. In some cases, they are getting older and have their retirement money tucked away and would like to see what it would be like to run their own business. Franchise businesses are particularly attractive to them as they like the structure and organization that comes from working in this business model.
Existing Employee
The buyer of a business can be an existing employee. If the business has a strong cash flow and the employee is able to put together a small down payment with the seller carrying back some of the financing, this can be a mutually beneficial arrangement. SBA financing may be an option here—especially if the employee has management expertise.
Investment Buyer or Financial Buyer
All buyers want a return on their investment. However, with investment or financial buyers this is their primary motivation. Their ability to get financing on as large part of the purchase price as possible is also motivating. They have less interest in the type of industry and many of the specifics of the business operation.
Synergistic Buyer
This is usually a company and their purpose of buying the business is their belief that joining the two companies will produce more, or be worth more, together than if the two companies were to remain separate.
Industry Buyer
This type of buyer is often a competitor or owns a very similar operation. They know the industry well and therefore see little value in paying for the expertise and skill of the seller.
Strategic Buyer
Like the synergistic buyer, the strategic buyer is usually a business owner with a goal to expand their current company. They leverage their expertise to enter into new markets by acquiring market share and then increase market share through the acquisition. Their strategy can also include deploying a new technology and/or eliminating a competitor or some competitive element.
Source
Wednesday, October 28, 2009
Thursday, October 15, 2009
Strategic Buyer
A manufacturing company in Noord-Brabant (west) is currently looking for a Strategic Buyer to be responsible for all sourcing and procurement activities for the Dutch production sites.
The Strategic Buyer will be part of the global procurement team and is responsible for the location the Netherlands. He/she reports directly to the Head of Strategic Procurement and Sourcing and works independently on sourcing strategies and procurement activities in the Netherlands.
The purchasing package includes direct and indirect material and the Strategic Buyer develops and implements sourcing strategic for all commodities in co-operation with his/her manager and other Buyers on site.
Depending on commodity he/she works with different departments of the company from engineering and facility management to marketing and material management.
The Strategic Buyer works project-driven as well as standardised and documents and reports all activities, results and bottlenecks to the strategic procurement organisation. His/her sourcing strategy needs to be in line with the global sourcing strategy set up by the global sourcing manager. He/she will therefore work closely with procurement managers and colleagues in different countries and areas to ensure that all activities are managed efficiently.
The right candidate for this role has a Master Degree and 5 – 10 years of professional procurement experience in which the following aspects have been learnt to a professional extent: sourcing, development of sourcing strategies, setting up and improving of procurement procedures as cost-saving programs, contracting. The candidate must have worked in a manufacturing environment gaining knowledge and experience in production processes. Knowledge of lean manufacturing, kanban, six sigma and/or MRP is preferred. Excellent communication skills in English and Dutch are required.
The Strategic Buyer will be part of the global procurement team and is responsible for the location the Netherlands. He/she reports directly to the Head of Strategic Procurement and Sourcing and works independently on sourcing strategies and procurement activities in the Netherlands.
The purchasing package includes direct and indirect material and the Strategic Buyer develops and implements sourcing strategic for all commodities in co-operation with his/her manager and other Buyers on site.
Depending on commodity he/she works with different departments of the company from engineering and facility management to marketing and material management.
The Strategic Buyer works project-driven as well as standardised and documents and reports all activities, results and bottlenecks to the strategic procurement organisation. His/her sourcing strategy needs to be in line with the global sourcing strategy set up by the global sourcing manager. He/she will therefore work closely with procurement managers and colleagues in different countries and areas to ensure that all activities are managed efficiently.
The right candidate for this role has a Master Degree and 5 – 10 years of professional procurement experience in which the following aspects have been learnt to a professional extent: sourcing, development of sourcing strategies, setting up and improving of procurement procedures as cost-saving programs, contracting. The candidate must have worked in a manufacturing environment gaining knowledge and experience in production processes. Knowledge of lean manufacturing, kanban, six sigma and/or MRP is preferred. Excellent communication skills in English and Dutch are required.
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