Are you looking to sell your engineering or land surveying business? If so, you may be wondering what types of buyers are out there and which one is right for your business. At Allen Business Advisors, we work with many different types of buyers who are interested in purchasing engineering and land surveying businesses. Here are five of the most common types of buyers that we see:
Key Employee Buyer
A key employee buyer is a current employee of the company who is interested in buying the business. The key employee has a vested interest in the success of the business and is usually familiar with the inner workings of the company. Oftentimes, they are overlooked due to the owner not believing the employee has the funds to buy the business. In fact, they do and they can borrow money at a reasonable interest rate usually at Prime +2.75% with a long repayment period.
Larger Companies
Larger companies that are in the business of providing engineering or land surveying services may be interested in purchasing an existing business in order to expand their operations. These companies usually have the financial resources necessary to purchase a business and may even be able to obtain financing from a bank or other lender.
Private Equity Group
Private equity groups are investment firms that provide capital to businesses in exchange for an ownership stake in the company. These firms may be interested in purchasing an engineering or land surveying business in order to enhance and grow their portfolio of companies. These are firms that invest in businesses, typically with the goal of selling them for a profit in the future.
Strategic Buyers
Strategic buyers are companies that are typically in the same or similar industry as the business being sold. These buyers may be interested in purchasing an engineering or land surveying business in order to expand their operations into a new market or to acquire a competitor.
Outside Third-Party Individual
Third-party individuals are usually people who are already working in the engineering or land surveying field and are looking to buy an existing business as a way to start their own practice. Also, they are usually managers at a large company and sometimes have operational and financial experience. Most times, they can identify opportunities for improvement within the company and understand how it should operate.
If you are looking to sell your engineering or land surveying business, contact Allen Business Advisors today. We can help you identify the right buyer for your business and facilitate the sale process. Schedule your free consultation today!