Every week, entrepreneurs ask us: "Do you have a database of buyers?"
The short answer: yes.
We continuously receive calls from entrepreneurs actively searching, experienced executives looking to become owners, or "entrepreneur + investor" duos.
The business acquisition market is dynamic and sustained.
The dream of becoming an entrepreneur isn't for everyone, but it clearly exists.
I have great respect for people who conduct an active search, find the right target… and close.
The alignment of favorable events required is impressive.
I have in mind a professional friend who searched for two years for his next business: he crisscrossed Quebec, studied various sectors, met bankers, accounting firms, and headhunters — week after week — while his down payment (from the sale of his previous business) melted like snow in the sun.
He didn't play defensively: he held firm, took calculated risks, and ended up succeeding.
A charismatic entrepreneur with unwavering determination.
But let's recognize it: his story is an exception.
The number of transactions concluded with an individual buyer from outside the sector decreases as the size and complexity of the business increase.
These types of transactions often require more concessions from the seller (payout structure, significant Vendor Take-Back (VTB), prolonged transition) and involve more execution risks.
Conversely, the strategic buyer (a player in your industry or an adjacent vertical) more often ticks the winning boxes for you: price, conditions, certainty, sustainability.
Let's see why.
The 4 Major Reasons to Prioritize the Strategic Buyer
1) A Price Often Superior
A strategic buyer who integrates you generates economies of scale and synergies: purchasing, logistics, cross-selling, shared overhead, production capacity, technology.
What they gain tomorrow, they can pay for today in the price — within reasonable limits — because the acquisition creates value for them.
2) Better Payout Conditions
The better the buyer understands the industry, the more access they have to better financing conditions and the more inclined they are to pay a high percentage in cash at closing, limiting the Vendor Take-Back (VTB) and "earn-outs" (contingent payments).
For you, that's more money on day one and less money at risk associated with your VTB, if any.
3) More Transactions Concluded
The strategic buyer knows your cycles, margins, capex, and challenges.
They already know what others would discover late in diligence.
Their understanding of the industry ensures they won't get cold feet during the transaction, limiting the chances of renegotiation or withdrawal.
4) The Sustainability of the Business and Your Teams
The new organization (buyer + seller) will have more resources at its disposal to face daily ups and downs.
The strategic buyer has more resources to integrate: this is often more reassuring for your key employees and clients.
Comparing Major Buyer Groups
Before launching into a sales process, it is crucial to understand how each type of buyer influences the final result.
The table below compares four major buyer profiles on six determining criteria: price offered, payout structure, probability of closing, quality of integration, and risk level for you.
These differences are not anecdotal: they can represent gaps of several hundred thousand dollars — and radically change your transition experience.
| Buyer | Price Offered | Payout | Closing Probability | Transition | Risk |
|---|---|---|---|---|---|
| Strategic | Higher (Synergies) | High Cash at Closing | High | Solid | Moderate |
| Financial (PE) | Competitive | High Cash at Closing | High | Variable | Moderate |
| Internal (MBO) | Fair | Significant Seller Note | Medium | Very Strong | High |
| Individual Buyer | Fair | Significant Seller Note | Medium | Hands-on | High |
For a seller in a position of strength (solid finances, stable team, visible growth), the strategic buyer offers the best risk-return balance.
Return to the Exception
Let's go back to our example from the beginning.
The seller found the rare gem and they spent 2 years developing the business together.
His patience was rewarded by an exceptional candidate whose qualities tipped the scales.
The seller's intuitive approach bore fruit, and the entire business benefited from it.
But the right choice isn't always so obvious.
In many cases, the strategic buyer is the best solution for the seller.
Your approach will then need to be well-orchestrated to optimize the result.
And you, which buyer group will you prioritize for the sale of your business?
Key Takeaways:
- The choice of buyer group already orients **80% of the result**: price, payout, certainty, sustainability.
- The strategic buyer often pays more and pays out more at closing thanks to synergies.
- A rigorous process (CIM, qualification, LOI, diligence without surprises) is your best lever.
- Remain discreet until closing and sell from a position of strength.
