The Million Dollar Business Exit Guide: Part 4
Marketing Your Business: Finding the Right Buyers for Your $2M-$20M Company
When selling a business in the $2M-$20M revenue range, finding the right buyer isn't just about getting the highest offer—it's about matching with an acquirer who sees your company's true potential and can help maximize its value.
In this guide, we'll explore the different types of buyers in this market segment and how to position your business to attract the right ones.
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Understanding Your Buyer Pool
At the $2M-$20M level, your potential buyer universe expands well beyond local entrepreneurs. Let's examine the three main types of buyers and what they look for:
1. Strategic Buyers
Strategic buyers are established companies looking to grow through acquisition. They often pay premium prices because they can:
Integrate your operations into their existing business
Leverage your customer relationships
Scale your intellectual property across their platform
These buyers typically offer the highest valuations when they can clearly see operational synergies.
2. Private Equity Firms (PE)
PE firms approach acquisitions in two ways:
Platform Acquisitions: Larger companies ($1M+ EBITDA) that can stand alone
Bolt-on Acquisitions: Smaller companies that complement existing portfolio companies
They value strong financials, scalable operations, and professional management teams.
3. Search Funds & Entrepreneurial Buyers
These sophisticated individual buyers typically:
Have significant operational experience
Bring both capital and expertise
Focus on businesses with $500K-$2M EBITDA
They're ideal for sellers who care about preserving company culture and taking care of employees.
Why Professional Marketing Matters
Simply listing your business online isn't enough. Successfully marketing a $2M-$20M company requires:
Strategic Positioning: Highlighting value drivers that matter to each buyer type
Professional Materials: Creating compelling teasers and detailed memorandums
Controlled Process: Managing confidential outreach to qualified buyers
Expert Guidance: Navigating complex negotiations and due diligence
The difference in outcomes can be substantial. Research shows that sellers working with M&A advisors achieve 25% higher valuations on average.
Reaching the Right Decision Makers
At Breakwater, we maintain relationships with over 10,000 active buyers, including:
Private equity firms and family offices
Strategic acquirers in multiple industries
Qualified individual buyers and search funds
Our extensive network ensures your business gets in front of the right decision-makers—maximizing both value and probability of closing.
Focus on the Deal Process, Not Listing Site
One of the biggest mistakes owners make is believing they can simply list their business on a marketplace like BizBuySell and wait for offers to arrive. In reality, selling a business of this size demands a carefully managed M&A process—not a classified ad.
At Breakwater, we don't just "list" your business—we execute a professional deal process with a detailed 6 step process:
Earn 25% more value
A recent study by the University of Alabama and Northern Illinois University found that sellers who work with a professional M&A advisor receive, on average, a 25% higher sale price than those who try and sell independently.
Moving to the Next Phase
Once buyer interest develops, you'll enter the critical negotiation phase. This is where having experienced guidance becomes essential to navigate multiple offers and structure the optimal deal.
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