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Types of Business BuyersStrategic Buyer
In this market where wealthy individuals may have cashed out of the stock market and in search of greater returns have parked their money with Private Equity Groups (PEGS), we are seeing increased activity of these PEGS looking for both platform and add-on companies to acquire. George & Company maintains a strong ongoing relationship with most of the Private Equity Groups, both National and International in nature. Also in play in this market are privately held companies looking to grow by acquisition as opposed to organic growth. While in the same or similar industry, they are most concerned about acquiring market share, many times hoping economies of scale will move a marginally profitable company further into the black. George and Company has the skills to identify the motivating factor(s) of a strategic buyer to enhance the value of their client company. 
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The Strategic Business 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. Publicly traded companies may have excess cash and are seeking an accretive add-on that rewards the shareholder by acquiring a company at a price to earnings ratio that is somewhat less than what the company has been historically trading at. Sometimes companies will target a congeneric merger. This type of merger between firms in the same general industry but having no mutual buyer-seller relationship can be mutually beneficial. An example might be a merger between a bank and a leasing company. 
