• When selling your business, it is important to note that there are two types of buyers: i) economic buyers that are primarily interested in generating financial returns through the purchase of businesses, and ii) optimal buyers that recognize the strategic and financial merits of a transaction, and thus will be inclined to offer premium value.

• Optimal buyers actively seek to acquire businesses, irrespective of size, that i) will enhance their existing operations, ii) add to or enhance their product portfolio, iii) allow them to enter new geographic or demographic markets, iv) expand their customer base and market share and/or v) diversify risk.

• When assessing the purchase of a business, optimal buyers look beyond intrinsic economic value, and focus on the future strategic and financial benefits. The potential to accelerate strategic and financial goals is the driving factor motivating buyers to pay premium prices.

• Optimal buyers typically include large domestic and international publicly traded corporations that seek companies which allow for accelerated entry into new markets, diversification of products or complementary organic revenue growth.

• Optimal buyers are typically from an outside industry.

• With pressure from Wall Street to consistently and predictably grow earnings, optimal buyers continuously seek acquisitions which will enhance their growth profile.

• Many of the larger buyers are public companies with stock that trades at a multiple to earnings. Earnings that are “acquired” in a transaction immediately create value at a multiple of such earnings. For example, if the stock of a buyer is trading at 15 times price to earnings (P/E) and the buyer acquires a company with $1 million in earnings, the transaction has generated $15 million of value to the buyer.

• With decades of collective experience, Generational Equity's representatives have continue to maintain an extensive network of optimal buyers in order to achieve maximum value for you as you are selling your business.