How to Choose the Right Buyer for Your Business
Not all buyers are the same. Business owners considering retirement or exit should weigh three main categories:
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Strategic buyers - competitors, suppliers, or customers looking for synergies.
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Financial buyers - private equity, investors, or individuals seeking returns.
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Stewardship buyers - operators committed to continuity, culture, and legacy.
The “right” buyer depends on your priorities: price, speed, continuity, or a mix.
Beyond the Multiple
Most owners start with one question: “What’s my multiple?” But seasoned sellers know the real question is, “Who am I selling to — and what will they do with my business after I’m gone?”
At Sixty74, we meet owners every week who’ve spent decades building something meaningful, only to find themselves uneasy about the prospect of selling to someone who might gut their company for short-term gain.
Choosing the right buyer isn’t just a financial decision. It’s a stewardship decision. It affects your employees, your customers, your community, and your legacy. In this post, we’ll break down the types of buyers, the trade-offs, and how to navigate the decision.
Why the Buyer Matters as Much as the Price
Deals don’t happen in a vacuum. The buyer determines:
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Whether your employees stay or are replaced.
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Whether your customers experience continuity or disruption.
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Whether your brand endures or disappears into a spreadsheet.
We’ve seen too many transactions where a great business was reduced to an asset strip. That’s not what most founders want.
Our post on After the Sale: Why Sellers Choose Stewards, Not Just Buyers dives deeper into this — but here, we’ll help you evaluate which buyer is right for your goals.
The Three Main Types of Buyers
1. Strategic Buyers
They include competitors, suppliers, customers, and businesses in adjacent markets.
Why they buy: Synergies. They want to acquire customers, talent, intellectual property, or market share.
Pros:
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Often willing to pay a premium for synergies.
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May create growth opportunities for your employees.
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Can expand your company’s footprint quickly.
Cons:
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Risk of layoffs (duplicate roles eliminated).
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Brand may disappear into the acquirer’s.
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Customers may feel disrupted.
How it can play out: A regional HVAC company acquired its competitor to eliminate overlap and expand service territory. Employees with duplicate roles were let go, but the combined company captured new contracts and improved margins.
2. Financial Buyers
They include private equity groups, search funds, investors, and individuals buying primarily for returns.
Why they buy: To generate ROI over a 3–7 year horizon, often via growth and eventual resale.
Pros:
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Can bring professional management and systems.
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May pay solid multiples, especially if there’s growth potential.
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Provide liquidity without tying to a competitor.
Cons:
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Shorter time horizons (looking to exit again).
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Risk of cost-cutting and culture erosion.
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Decisions may prioritize EBITDA over legacy.
How it can play out: A family-owned landscaping company sold to a private equity fund. The fund invested in technology and marketing, doubling revenue in 5 years — but also cut staff benefits to improve margins.
3. Stewardship Buyers
They are typically operators, family offices, or acquisition firms like Sixty74 that prioritize long-term ownership, people continuity, and legacy.
Why they buy: To protect and grow the business responsibly, not flip it.
Pros:
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Employees are retained and invested in.
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Customer relationships are respected.
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Legacy is preserved while enabling growth.
Cons:
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May not match the top-dollar offer of a strategic buyer.
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Slower, more relationship-driven process.
How it can play out: A service company where the founder’s biggest concern was his employees’ jobs was acquired. The buyer spent the first 100 days listening, learning, and building trust (see our post on The First 100 Days ). Staff stayed, customers felt continuity, and the founder exited knowing his legacy was safe.
The Decision Matrix: Questions to Ask Potential Buyers
When evaluating buyers, ask:
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What happens to my employees?
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Will my customers see continuity or disruption?
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Will my brand survive?
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What’s your time horizon?
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How do you plan to grow this business?
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How involved do you expect me to be post-sale?
We recommend creating a decision matrix to score each buyer against your priorities:
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Legacy Protection
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Employee Retention
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Customer Continuity
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Growth Potential
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Valuation/Terms
The Emotional Equation: Head vs. Heart
For most owners, selling is emotional. Pride, fear, and uncertainty all show up at the table. That’s normal.
Some sellers decide purely on numbers. Others prioritize the team. Most want a balance. Recognizing your true priorities early helps you avoid regret later.
The Exit Planning Institute reports that most owners regret selling within a year — not because of the money, but because of what happened afterward.
A Note for Brokers
If you’re a broker, you already know this: sellers want more than dollars. Bringing them buyers who emphasize stewardship and continuity can differentiate you. It’s why brokers enjoy working with us — because we move with integrity, clarity, and decisiveness.
The Bottom Line: Choose a Steward, Not Just a Buyer
The right buyer isn’t always the one with the highest offer. It’s the one who protects your employees, respects your customers, and carries forward the legacy you’ve built.
At Sixty74, that’s what we do. We’re not flipping businesses. We’re stewarding them for the long haul.
If you’re exploring a sale and want to talk about what the right buyer looks like, let’s connect.
