Built to Sell Radio Ep 509 Mastering the Deal: 4 Buyer Types — Private Equity, Strategics, Hybrids & Acquisition Entrepreneurs
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Aug 29, 2025 Discover the four distinct buyer types in the world of business acquisitions. Delve into private equity's role in fueling growth and how it shapes the seller's journey. Learn about strategic acquirers who enhance value through targeted acquisitions and hybrid models that capitalize on market opportunities. Explore the intriguing rise of acquisition entrepreneurs, particularly MBA graduates, as they opt for buying over starting new ventures. Uncover various financing strategies that protect investors and preserve company culture!
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Private Equity Uses Leverage And Rollover Equity
- Private equity buys majority stakes, uses debt, and expects founders to often stay and roll equity.
- That roll can multiply future payouts if the business grows under PE sponsorship.
PE As A Sponsor Backing Operators
- Adam Coffey describes PE as a 'sponsor' that backs operators with capital and expects founders to stay and grow aggressively.
- He recounts selling multiple companies and using rollovers to increase wealth across several exits.
Strategics Pay For Synergy, Not Standalone Value
- Strategic acquirers value how your business boosts their existing products and will pay for that incremental value.
- That buyer will often choose acquisition over building internally when buy is faster or cheaper than build.
