What are stages to find the best buyer and the best seller for a company?
Buying the right company at a reasonable valuation is the key to success in merger and acquisition . For the seller, it is important to scout the right buyer that can push the company to growth. The first thing that a seller must do is to make a list of buyers like companies, investment firms and individuals to be approached during the M&A sale process. Then one will have to determine how many buyers to approach. While managing multiple buyers can be challenging, it is necessary to give yourself the best chance of closing a successful deal. There are mainly two types of buyers – strategic and financial. The former are those operating companies that provide products or services and are often competitors, suppliers or customers of the firm. Their goal is to identify companies whose products or services can synergistically integrate with their existing business. A strategic buyer has a greater motivation to buy the business and is willing to pay more, especially if key synergies e...