In order to fully understand the dynamics of a deal whether you act for the buyer or the seller you have to understand the Buyer and their motives for acquiring.
The Buyer
Broadly speaking, there are 4 types of Buyers:
Reasons for Acquiring
In our previous “Intro to M&A” piece we explain that for the most part, Buyers acquire in order to try and bypass organic growth stages and achieve business benefits or synergies. The Acid Test is "Can you, the buyer, run the assets of the business more effectively than the present owners? If not, do not proceed". Below we list and annotate some of the individual reasons for acquiring: