Those who want to sell their California business will need a strategy for a successful transaction. A strategic buyer could be a larger competitor or a company in another industry that could make use of whatever the business being sold has created. There are many advantages to finding a strategic buyer such as getting a higher sale price or seeing the company grow after the sale.

However, in most cases, companies are sold to financial buyers. This is partially because a business owner may give up his or her leverage by asking a competitor to buy the business. Typically, the only way to regain this leverage is to have multiple companies make a bid to buy it. To have the best chance of selling to a strategic buyer, it is important to consider early which buyer could be the best fit.

In most cases, merging companies have a history of working together or have some sort of relationship with each other. To increase the odds of a merger, business owners should strive to solve problems that the new partner organization struggles to solve on its own. It is also important to let it be known that the company could be open to an acquisition event. Business owners need to be patient as they look for the right deal.

When a company is going to be purchased or otherwise acquired, there is generally a period of due diligence that needs to be performed. An attorney may help create a timetable for this step to be completed. Legal counsel may also be able to answer questions that a buyer has. This might make it easier for a transaction to be completed in a timely and favorable manner.