M&A: The Difficulties of Being a Buyer

Who has the more difficult position during an M&A deal, the buyer or the seller?This question often comes up when talking about M&A (merger and acquisition) deals. If you’ve ever worked a sales job in retail, you know firsthand the difficulties of being a seller. However when it comes to M&A, the buyer is often the one with the difficult job.

One of the biggest difficulties for a buyer is that a seller usually falls into two basic categories. First, there are those who know they want to sell their business. A seller who knows they want to sell has prepared themselves for the sale by learning about the M&A process, or by acquiring the assistance of an M&A specialist. From a buyer’s perspective, this means a more competitive market and harder buy. Indeed, a good intermediary can actually create an auction atmosphere for a business that has been properly groomed to go to market!

The second type of seller is one who is not interested in doing a deal. They are not actively looking for buyers but rather just testing the waters and as a result will not be too receptive to cold calls, monetary offers, or any other type of incentive.

The hassles of being a business buyer can be alleviated through an intermediary like George and Company. With over 30 years of experience in M&A, as well as connections with a variety of sellers, George and Company will guide you through the entire buying process.