Not all buyers are created equal. Some are looking for cash flow, others for a bolt-on acquisition, while others still are seeking access to markets, technology, or talent. If you want to maximise value when selling your business, it is essential to identify the right type of buyer and present your business in a way that emphasises strategic value over raw financials.
This article outlines how to identify strategic buyers, how to understand what they value, and how to position your business accordingly to drive competitive tension and premium outcomes.
Valuation multiples vary by industry sector. Strategic value is the additional worth a specific buyer may assign to your business due to synergies, growth potential, or strategic alignment with their existing operations. While a financial buyer may focus strictly on your current EBITDA, a strategic buyer might be willing to pay a premium because your customer base, IP, or market presence will unlock growth or competitive advantage for them.
Understanding how to frame your business through the lens of strategic value is a critical factor in achieving a higher sale price and smoother negotiations.
Start by mapping out who would benefit most from acquiring your business. This could include:
Think beyond who might buy your business and ask who gains the most from owning it. The more value your business creates for them, the more they may be willing to pay.
While every buyer is different, strategic acquirers generally look for one or more of the following:
Speak to your accountant, broker, or industry advisor to help you identify where the true strategic leverage lies in your business model.
Once you know the type of buyer you are targeting, build a profile of what they would likely look for in a target business. Use this profile to shape how you present your business in marketing documents, including the Information Memorandum. This could involve:
Your goal is to help the buyer quickly see the upside in your business, even beyond the current numbers.
The way you present your business can either limit or unlock its potential value. Instead of focusing solely on your current operations, tell a story of what this business could mean to the right acquirer. Focus on:
Re-frame your business not just as a static income stream, but as a springboard for growth.
If your business would reduce costs, boost revenue, or improve operations for a buyer, quantify it. Use models or examples that illustrate:
Even high-level estimates can help buyers understand the upside and justify paying more.
When seeking strategic buyers, quality matters more than quantity. Focus on targeted outreach rather than broad advertising. Identify serious buyers vs time wasters. Your business broker or M&A advisor should be able to run a discrete and focused process that puts your business in front of the most likely strategic acquirers. The goal is to create competitive tension between buyers who truly value what you offer.
Business Type: Regional Civil Engineering Firm Location: Mackay, QLD
Background
The owner of a civil engineering consultancy with a strong portfolio of local council projects and specialist stormwater expertise wanted to exit for retirement. While revenue was modest, the business had excellent relationships with regional councils, unique proprietary stormwater modelling tools, and a highly skilled team of engineers.
Action Taken
The broker identified that the business's strategic value far exceeded its standalone financials. They:
Targeted Tier 2 infrastructure firms and national consultancies looking to expand regionally
Emphasised long-standing government relationships and prequalification with multiple councils
Included case studies in the Information Memorandum showing how the firm could expand the buyer's footprint west of Brisbane
Presented the technical team and proprietary modelling tools as scarce and difficult to replicate
Result
The business was acquired by a national environmental consultancy looking to expand into regional QLD. The acquirer paid a 26% premium over the original asking price, citing the team, regional access, and council project pipeline as strategic growth levers.
Because strategic buyers may include competitors or industry players, it is important to balance marketing strength with confidentiality during a business sale. Use non-disclosure agreements, staged disclosures, and blind profiles until serious interest is established.
Be prepared to disclose more detail progressively as you move through the due diligence phase and as buyer intent becomes clearer.
Strategic value is often the difference between a standard valuation and a standout exit. By identifying the right type of buyer and presenting your business as a solution to their strategic goals, you can justify a stronger asking price and reduce negotiation friction.
If you are thinking of selling in the next 12 to 24 months, speak with a qualified business broker to help identify strategic acquirers and tailor your marketing materials to highlight the value they will see in your business.
Maximum Value, Fast!
We specialise in achieving the maximum sale price for your business with the best possible deal structure for you and within a fast timeframe.
Real Business Experience
Lloyds have over 41 Years of industry experience with a team of passionate and qualified business brokers, specialising in mid-market business sales of $1 million to $100 million.
Free Business Appraisal
A qualified business broker will provide you with an obligation free, pre-sale appraisal of your business, so you know what approx timeframe and price to expect before proceeding.
Access To Buyers
Lloyds has an Australian and International reach, with a database of over 50,000 prospective buyers and equity firms ready to start marketing your business to.
Confidentiality Guaranteed
With discrete marketing techniques your confidentiality before, during and after the sale process is guaranteed.
Step-By-Step Guidance
We step you through the process finding the right buyer, preparing to achieve maximum sale value and closing the sale.
