The Funnel, Ep. 9: Where Do You Find Your Buyer? скачать в хорошем качестве

The Funnel, Ep. 9: Where Do You Find Your Buyer?

How Do You Find the Right Buyer for Your Business? Understanding Strategic and Financial Buyers Once you move from curiosity into execution, one of the most common questions founders ask is how buyers are actually found. Finding the right buyer is not guesswork, but it does require structure, preparation, and an understanding of who is actively acquiring businesses like yours. In this episode of The Funnel, Candor Advisors founder Kirk Michie explains how founders should think about identifying and reaching potential buyers. Building on earlier discussions around valuation, timing, advisors, and process, this video focuses on the mechanics of buyer sourcing and the types of buyers that drive most M&A activity today. Kirk explains why buyers are more accessible than many founders realize and why preparation matters before outreach begins. The episode breaks down the difference between strategic buyers and financial buyers, including private equity firms, search funds, and independent sponsors. Kirk explains how buyers are identified through databases, marketplaces, and direct industry knowledge, and why competitive tension matters for achieving the best price and terms. He also clarifies common misconceptions, such as the role of venture capital versus private equity, and why founders should be careful about approaching buyers too early or without a process. For founders thinking about exit timing, valuation leverage, and sell-side readiness, this episode provides a practical framework for understanding where buyers come from and how the market actually works. The key takeaway is simple: buyers are findable, but success depends on sequencing, preparation, and disciplined execution. ⸻ Transcript The Funnel – How Do You Find a Buyer for Your Business? Speaker: Kirk Michie, Candor Advisors Hey gang, Kirk Michie here. I’m back with another update on the funnel. We’ve covered the early questions around what your number is, what multiples look like, what your business is worth, and how you find that information. We’ve talked about whether to hire a transaction advisor and what the process of selling a company looks like. Now we’re almost through the middle part of the funnel. You’ve moved from curiosity into execution, but you’re not quite ready to go to market yet. The next question is how you actually find a buyer for your business. There are a couple of different ways to do this, and there’s both art and science involved. The science is that there are databases available that track buyers. They’re expensive, and many investment banks, including Candor Advisors, subscribe to them. These databases help identify not only the right contact people, but also the type and size of deals buyers are actively pursuing. The simplest way to find buyers is to hire an advisor who is active in your sector or a broad-based investment bank that understands buyer behavior. Ideally, you’re working with a firm that only represents selling founders, so there are no conflicts with buyers, especially private equity firms. Another approach depends on the size of your business. In some cases, you may already know who your buyer is. It could be your largest competitor, your toughest competitor, or the biggest company in your industry. The key is finding the right contact person. If you’re sourcing buyers on your own, it’s usually not a good idea to go directly to a single buyer early, because you won’t be able to create competitive tension. If you’re trying to identify contacts, LinkedIn can help, as well as tools like RocketReach. Titles to look for include corporate development, CFO, or CEO, though reaching too high can reduce responsiveness. There are generally two types of buyers. Strategic buyers are companies already operating in your industry or adjacent to it. They grow through acquisition, but their core business is what you do, whether that’s professional services, manufacturing, or product creation. The second category is financial buyers. These are primarily private equity firms. Venture capital firms focus on early-stage investments and are not buyers of operating businesses. Private equity firms, especially those focused on leveraged buyouts, majority recapitalizations, or full buyouts, are active acquirers. A significant portion of current deal activity is driven by private equity, particularly for businesses under $100 million in value. There are also search funds, which can be found through databases, marketplaces like Axial, and groups such as Cap Target. Independent sponsors are another buyer type. They resemble private equity firms but don’t have a dedicated fund. After securing a letter of intent, they raise capital to complete the transaction