Independence by Design™ #426: Understanding Buyers: How Ownership Structures Shape M&A Goals with Jeff Buettner
Most business owners think a high offer price is the ultimate goal in selling their business—but the truth is, every buyer has their own game plan, and not all offers are created equal.
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In this episode of Independence by Design™, I sit down with Jeff Buettner from ButcherJoseph to explore how private equity firms, strategic buyers, and family offices approach acquisitions and structure deals to meet their goals. We break down the nuances of each buyer type, their timelines, and their financial structures so you can better understand what they value and how their goals might align (or conflict) with yours.
We also discuss how to position your business for the right buyer, evaluate offers beyond the headline number, and ensure the deal you choose fits with your long-term ownership goals. If you’ve ever wondered what drives buyers’ decisions or how their priorities impact your transaction, this conversation will demystify the process.
Jeff Buettner is a seasoned advisor at ButcherJoseph, specializing in helping business owners navigate the complexities of M&A transactions. With deep experience in private equity, strategic acquisitions, and family office deals, Jeff has guided countless owners through the sale process, aligning transactions with their financial and personal goals.
Chapters:
- (00:00) Introduction and guest overview with Jeff Buettner from ButcherJoseph, why understanding buyers’ goals is critical for owner-operators, ESOPs, Private Equity, and Third-Party Buyers
- (12:00) Financial and strategic buyer motivations: hurdle rates and cost of capital
- (25:10) Navigating buyer-seller assumptions in acquisitions, aligning buyer and seller goals: how mismatched timelines and objectives can lead to deal tension
- (30:45) Preparing your business for sale: practical steps to make your company attractive to different types of buyers
- (44:00) Evaluating acquisition transaction structures: ESOPs, tax savings, and deal challenges, what large corporations look for in acquisitions and how they drive shareholder value, private equity transaction structuring: leveraged buyouts and growth CapEx
- (48:37) Analyzing ESOP vs. third-party sale- pros, cons, and strategic considerations
- (56:00) Maximizing free cash flow and transition ownership: management buyouts and ESOP planning
- (1:01:40) Navigating business value and capitalization: market dynamics, financial engineering, and operational improvements
- (1:11:00) Closing thoughts - macro environment, the new administration, current lending and investment landscape
- Rate, comment and share with the owner/operators you know!
Ryan Tansom is a seasoned entrepreneur, speaker, and the founder of Independence by Design™, a transformative ownership framework for growth-oriented business owners. After turning around and selling his family business in an eight-figure exit, Ryan spent over a decade dissecting the lessons learned from his journey. His mission is to help other business owners avoid the pitfalls he encountered by providing them with the tools and knowledge to align their business operations with their personal and financial goals.
With a deep understanding of the challenges faced by owner-operators, Ryan developed Independence by Design™ to empower owner-operators to create sustainable cash flow, grow their company’s equity value, and achieve true independence. He has shared his insights on hundreds of stages, including Vistage, EO, and industry associations, and has reached over 500,000 listeners through his podcast.
Ryan is passionate about helping business owners get unstuck from the day-to-day grind and design a business that serves their life, not the other way around.
Resources:
Independence by Design™ Workshop: https://ryantansom.com/independence-by-design-workshop
Independence by Design™ Ownership Coaching: Ryan Tansom’s Ownership Accelerator programs and coaching https://ryantansom.com/coaching
Ryan Tansom Website https://ryantansom.com/
Ryan Tansom LinkedIn https://www.linkedin.com/in/ryantansom/
Ryan Tansom Twitter https://twitter.com/RyanTansom
Ryan Tansom YouTube https://www.youtube.com/@ryantansom
Ryan Tansom 30-Minute Ownership Strategy Call https://calendar.app.google/tsKk7z6ohugDchWq8
Sound Bites
“Each buyer plays their own game of capitalism, driven by their unique goals and ownership structure. Understanding their playbook helps you align the deal with your goals.” – Ryan Tansom
“Private equity firms focus on maximizing value within a timeline, while family offices prioritize long-term cash flow. The right fit depends on your goals as a seller.” – Jeff Buettner
“The deal isn’t just about the offer price—it’s about finding a buyer whose goals align with yours.” – Ryan Tansom