Types of BuyersStrategic Buyer The Strategic Buyer is usually from a similar industry and typically has a specific reason for wanting to buy a particular company. Furthermore, the strategic buyer will frequently be willing to pay a premium price in order to obtain a company possessing that quality. On the other hand, it is important for the Seller to understand the concept of “Barrier to Entry “ as it can impact the value that a strategic buyer will place on a business. Barrier to Entry occurs when a buyer refuses to pay a premium price for a company because they are not looking to acquire all the aspects of that business. This results from them already understanding the business, having access to their own vendor and customer lists, enjoying membership in trade organizations, already engaged in some aspects of the industry, etc. George & Company has extensive experience with this type of buyer and works diligently to identify the Strategic Buyer's motivation. |
