At Adventum Group, our first consideration is to understand the personal motivations of the owners of a business. Based on their motivations we can begin to understand which of the various types of buyers we should consider.

During the Exit Planning stage of the Compass M&A service we complete a thorough analysis of your business. We help you understand how companies are valued. All buyers, regardless of the type, want sustainable and transferable revenues and earnings. We need to understand the revenues, earnings and intangible factors that influence your business. What are the features or assets of your business that would attract buyers? What are the tangible and intangible assets that establish your unique position in your markets?

Based on these critical considerations we can begin to understand the key characteristics that make business transactions possible. Each type of buyer has distinctive characteristics that correlate to the motivation behind the purchase of a business. In addition, the price each type is willing to pay for a company is directly proportionate to its motive.

Financial buyers are most interested in your future earnings, specifically your future cash flow. They're interested in their cash-on-cash return on their investment, hoping that it will be better than alternative investments. These buyers purchase businesses with the focused purpose of making the maximum amount of profit with the least amount of cash invested. Examples of financial buyers are Private Equity Groups (PEGs) or a small investor group of retired or ex-corporate executives.

Strategic buyers may be interested in your product or services, geographic location, patents or licenses, employee skills, customer base, suppliers, etc. They are already in the same or a related business and are looking for an opportunity to grow through a strategic acquisition. Strategic buyers are typically public and private corporations and offshore companies.

Synergistic buyers are usually multi-product/service companies that are looking for a "fit" or way to extend their product/service offerings. Synergistic buyers are typically public or private corporations and offshore companies, and they are looking to grow by acquiring complementary companies.

We carefully match owner goals with the right buyer profile. For example, the motivation of some business owners is to gain some personal liquidity and access to growth capital today while staying actively involved in the business after a transaction. For this business owner, financial buyers are ideal so the present owner gains liquidity at the time of the transaction and remains with the company and retains an ownership position after the transaction. Together, the owner and the PEG grow the business with a planned future liquidity event. This way the owner gets two bites of the "apple", one during the recapitalization and a potentially bigger one during a future liquidity event.

After understanding the motivations of a business owner, we select those buyers who would have the most interest in the value that your company has to offer. In following this approach we take into consideration your objectives relative to your future business plans, your employees and your business goals in general. We find answers to questions owners must evaluate, such as

• "Are you going to retire or stay on with the business?"
• "What's the best fit for your employees?"
• "Will your business lose its identity after the sale?"

After we have identified the most appropriate buyers we contact them, assess their interest in your un-identified company, and have them sign a Non Disclosure Agreement (NDA). When the NDA is received, we send them the company documentation (Confidential Memorandum).

For most business owners, selling a company is a one-time proposition. Adventum Group guides owners through this process through our Compass M&A Service. We offer a proven process for finding the right buyer and managing the Dealmaking, and Adventum Group's managing director is an experienced entrepreneur as well as M&A expert.

Please click through for a list of associations we belong to that help us find the right buyers, or learn more about how we manage confidentiality throughout the transaction process. Or find about more about our Compass M&A Service or fill out this contact form to learn more about how we can help you find the right buyer.

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