#426: Understanding Buyers: How Ownership Structures Shape M&A Goals with Jeff Buettner

Most business owners think a high offer price is the ultimate goal in selling their business—but the truth is, every buyer has their own game plan, and not all offers are created equal. 

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In this episode of Independence by Design™, I sit down with Jeff Buettner from ButcherJoseph to explore how private equity firms, strategic buyers, and family offices approach acquisitions and structure deals to meet their goals. We break down the nuances of each buyer type, their timelines, and their financial structures so you can better understand what they value and how their goals might align (or conflict) with yours. 

We also discuss how to position your business for the right buyer, evaluate offers beyond the headline number, and ensure the deal you choose fits with your long-term ownership goals. If you’ve ever wondered what drives buyers’ decisions or how their priorities impact your transaction, this conversation will demystify the process. 

Jeff Buettner is a seasoned advisor at ButcherJoseph, specializing in helping business owners navigate the complexities of M&A transactions. With deep experience in private equity, strategic acquisitions, and family office deals, Jeff has guided countless owners through the sale process, aligning transactions with their financial and personal goals.

Chapters:  

• (00:00) Introduction and guest overview with Jeff Buettner from ButcherJoseph, why understanding buyers’ goals is critical for owner-operators, ESOPs, Private Equity, and Third-Party Buyers 

• (12:00) Financial and strategic buyer motivations: hurdle rates and cost of capital  

• (25:10) Navigating buyer-seller assumptions in acquisitions, aligning buyer and seller goals: how mismatched timelines and objectives can lead to deal tension 

• (30:45) Preparing your business for sale: practical steps to make your company attractive to different types of buyers 

• (44:00) Evaluating acquisition transaction structures: ESOPs, tax savings, and deal challenges, what large corporations look for in acquisitions and how they drive shareholder value, private equity transaction structuring: leveraged buyouts and growth CapEx   

• (48:37) Analyzing ESOP vs. third-party sale- pros, cons, and strategic considerations   

• (56:00) Maximizing free cash flow and transition ownership: management buyouts and ESOP planning  

• (1:01:40) Navigating business value and capitalization: market dynamics, financial engineering, and operational improvements  

• (1:11:00) Closing thoughts - macro environment, the new administration, current lending and investment landscape 

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Ryan Tansom is a seasoned entrepreneur, speaker, and the founder of Independence by Design™, a transformative ownership framework for growth-oriented business owners. After turning around and selling his family business in an eight-figure exit, Ryan spent over a decade dissecting the lessons learned from his journey. His mission is to help other business owners avoid the pitfalls he encountered by providing them with the tools and knowledge to align their business operations with their persona