Selling your business is never simply about finding a buyer – it’s about finding the right buyer.
After 30 years of buying, building, selling, and advising businesses, I can say with absolute confidence: not all buyers are created equal. The type of acquirer you attract will determine not only your valuation, but also the structure of the deal, the future of your team, and whether your post-exit life is one of satisfaction or regret.
In The Exit Roadmap, I talk extensively about the importance of understanding buyer types because too many sellers make the mistake of treating all offers equally. But each type of acquirer brings different motivations, different expectations, and different risks.
In this article, I’ll break down the 5 most common types of business buyer – and share practical strategies for how to attract the right one for your unique situation.
1. Individual Buyer / Management Buy-In (MBI)
Who they are:
Often an experienced entrepreneur, senior executive or investor looking to acquire a business and run it day-to-day. They may be self-funded or backed by third-party investors.
What they want:
- A stable, profitable business they can operate directly
- Businesses with strong operational systems that don’t depend on the founder
- Opportunities for personal involvement and long-term growth
Valuation tendency:
Typically conservative. Because individuals often fund deals with personal capital or loans, they are highly risk-averse.
Ideal for:
- Owners looking for a clean break
- Businesses with established teams and low reliance on owner
- Modest growth businesses in stable sectors
How to attract them:
- Ensure detailed process documentation and operational manuals are in place
- Develop a strong second-tier management team
- Present 3–5 years of stable financials with strong recurring revenue
- Reduce owner-dependence well in advance
My experience:
I’ve worked with multiple clients where this buyer profile offered not the highest price, but the cleanest exit. One owner who sold to an MBI candidate was completely transitioned out within 90 days – something that wouldn’t have been possible without preparing for years in advance.
2. Trade / Strategic Buyer
Who they are:
A company already operating in your sector looking to acquire your business to achieve market consolidation, synergies, or access to new products, customers or geographies.
What they want:
- Access to your customer base or market niche
- Synergies that improve their profitability
- Intellectual property, technology, or strategic assets
- Revenue and profit contribution post-acquisition
Valuation tendency:
Often higher than financial buyers because of potential synergies and cost savings. Strategic buyers may pay a premium for your specific assets or market position.
Ideal for:
- High-growth businesses with niche market positions
- Companies with valuable IP, contracts, or brand equity
- Founders willing to stay involved during integration
How to attract them:
- Clearly identify your unique strategic value (IP, market share, distribution)
- Document any efficiencies they could achieve post-acquisition
- Build a strong pipeline of future revenues and contracts
- Position your business as scalable under new ownership
My experience:
One of my clients who operated in a specialist B2B SaaS niche attracted multiple strategic buyers. With a recurring revenue model and clear synergies for acquirers, the business sold at a multiple 40% higher than the sector average.
3. Private Equity Buyer
Who they are:
Investment funds seeking to acquire businesses with strong cash flow, growth potential, and professional management teams – typically with a 3–7 year investment horizon.
What they want:
- Strong EBITDA and recurring revenues
- Low capital expenditure needs
- Scalability and consolidation opportunities
- Management team capable of running the business post-sale
Valuation tendency:
PE buyers often pay attractive multiples if you fit their portfolio model. They tend to structure deals with significant deferred payments, earn-outs, or retained equity.
Ideal for:
- Profitable, mid-market businesses with £1m+ EBITDA
- Founders willing to stay involved for a transition or second exit
- Companies primed for rapid growth or sector consolidation
How to attract them:
- Professionalise your financial reporting and KPIs
- Build a clear strategic growth plan with defined milestones
- Strengthen management team depth and succession planning
- De-risk customer and supplier dependencies
My experience:
A client of mine completed a deal with a mid-market PE fund where they retained a 30% stake. Three years later, the second exit delivered double the original payout. PE can work extremely well when owners are prepared to stay for the next growth phase.
4. Family Office
Who they are:
Privately managed investment vehicles for wealthy families seeking stable, long-term investments rather than rapid growth or fast exits.
What they want:
- Long-term stability and consistent cash flows
- Ethical, cultural, and reputational fit
- Businesses that can be held for decades
- Conservative, steady growth rather than high-risk expansion
Valuation tendency:
Moderate to high, but highly selective. They value stability over aggressive projections.
Ideal for:
- Businesses with stable recurring revenues
- Founders seeking continuity for employees and legacy
- Owners looking for long-term stewards of the business
How to attract them:
- Highlight ethical governance, ESG credentials, and cultural values
- Present long-term cash flow stability and limited volatility
- Build a strong leadership team independent of owner
- Document social impact and community contribution if applicable
My experience:
For certain owner-managed businesses, family offices offer peace of mind, knowing the business will be cared for long-term while preserving employment and culture.
5. Management Buy-Out (MBO)
Who they are:
Your existing leadership team purchasing the business, often supported by external finance or PE backing.
What they want:
- Continuity of control and culture
- A business they already understand intimately
- Deal structures that allow gradual ownership transition
Valuation tendency:
Often slightly lower headline prices but highly attractive terms for owners wanting a phased exit.
Ideal for:
- Owners wanting to reward loyal teams
- Businesses with strong management bench strength
- Companies where owner wishes to exit gradually
How to attract them:
- Involve management early in succession conversations
- Strengthen middle management capabilities
- Structure an affordable financing plan
- Secure financing partners well in advance
My experience:
I’ve seen many owners achieve highly satisfying exits by enabling management to take over. While it may not deliver the absolute highest price, it often delivers the greatest peace of mind and legacy protection.
Why Buyer Type Shapes Deal Outcome
Ultimately, who you sell to impacts not just price, but:
- Deal structure (earn-outs, deferred payments, retained equity)
- Post-sale involvement (hands-on vs hands-off)
- Impact on staff and company culture
- Legacy protection
That’s why in The Exit Roadmap, I strongly advocate business owners identify their ideal buyer before going to market.
Prepare Early to Attract the Right Buyer
Attracting the right buyer starts long before you begin marketing your business. It’s about being both Seller Ready and Business Ready:
- Seller Readiness: Clear personal goals, financial clarity, emotional readiness to let go.
- Business Readiness: Strong financials, low dependence on owner, scalable systems, professional management.
According to the Exit Planning Institute, 70–80% of businesses listed for sale never sell, largely due to poor preparation. Furthermore, 58% of owners have never had a formal valuation. Preparation is everything.
Final Thought
There is no “best” buyer – only the best buyer for you.
Knowing the types of acquirers out there allows you to prepare strategically, position your business correctly, and negotiate from a place of strength. The result? A deal that delivers not just financial reward, but peace of mind, legacy, and personal satisfaction.
About the Author
Chris Spratling is the author of The Exit Roadmap and founder of Chalkhill Blue. He has advised hundreds of business owners on how to build sale-ready businesses and secure successful exits.