2Bobs—with David C. Baker and Blair Enns

10 Reasons a Buyer Might Want Your Firm

8 snips

Feb 12, 2025

The hosts debate whether to build a firm with the intent to sell or to operate as if it will never be sold. They discuss the significance of client concentration risks and the strategic value of diversifying client portfolios. Intellectual property is highlighted as a key asset in firm sales, with advice on its development and protection. Insights on pricing strategies in acquisition deals reveal how profit margins can boost market value. Finally, they explore motivations behind mergers, including geographic expansion and the trends of mentorship and succession planning.

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ADVICE

Multiple Management Perspectives

Run your firm as if you'll sell it, or like you'll never sell it, or like you're going to franchise it.
These seemingly contradictory approaches all offer valuable perspectives on improving your business.

INSIGHT

Buyer Priorities

Buyers care about profit, not staff or work quality.
Balance employee well-being with profitability, as only the latter attracts buyers.

ADVICE

Understanding Buyer Motivations

Understand the different reasons a buyer might acquire your firm.
Recognizing their motivations gives you leverage in negotiations.

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