A premium buyer recognizes not
only the financial, but also the
strategic merits of a transaction
 
Premium buyers look beyond the
intrinsic value of a business and
focus on the pro forma financial
and strategic benefits
 

Premium buyers are typically
from an outside industry and
include large domestic and
international publicly traded
corporations

 
Premium buyers often have the
acquisition currency that enables
them to pay premium prices

 

 

 

 

 

 

 

 

 

 

 

 

www.genwealthequity.com

 

Defining a “Premium Buyer”
 

• There are two types of buyers, i) economic buyers that are primarily
interested in generating financial returns through the purchase of
businesses, and ii) premium buyers that recognize the strategic and
financial merits of a transaction, and thus will be inclined to offer premium
value.

• Premium buyers actively seek to acquire businesses, irrespective of size,
that i) will enhance their existing operations, ii) add to or enhance their
product portfolio, iii) allow them to enter new geographic or demographic
markets, iv) expand their customer base and market share and/or v)
diversify risk.

• When assessing the purchase of a business, premium buyers look
beyond intrinsic economic value, and focus on the future strategic and
financial benefits. The potential to accelerate strategic and financial goals
is the driving factor motivating buyers to pay premium prices.

 
Who are premium buyers?
 

• Premium buyers typically include large domestic and international publicly
traded corporations that seek companies which allow for accelerated
entry into new markets, diversification of products or complementary
organic revenue growth.

• Premium buyers are typically from an outside industry.

With pressure from Wall Street to consistently and predictably grow
earnings, premium buyers continuously seek acquisitions which will
enhance their growth profile.

 
Why can premium buyers pay more?
 

• Many large premium buyers are public companies with stock that trades
at a multiple to earnings. Earnings that are “acquired” in a transaction
immediately create value at a multiple of such earnings. For example, if
the stock of a buyer is trading at 15 times price to earnings (P/E) and the
buyer acquires a company with $1 million in earnings, the transaction has
generated $15 million of value to the buyer.

 
GW Equity's representatives have decades of collective experience in selling businesses at premium valuations
 

• With decades of collective experience, GW Equity's representatives
have continue to maintain an extensive network of premium buyers in
order to achieve maximum value for your business.