Here are 10 key strategies to help build a high-impact buyer list that achieves optimal outcomes.

1. Segment Buyers into Tiers

The first step in building an effective buyer list is segmentation. Potential buyers should be categorized into three tiers based on their likelihood of engaging and their strategic fit with the target company:

• Core Buyers: These are the most promising buyers, often direct competitors or companies with a strong strategic alignment. They are highly likely to pursue the opportunity, as the acquisition complements their existing operations or growth strategy.
• Opportunistic Buyers: These buyers may operate in related industries or have demonstrated interest in expanding into the target’s sector. While less obvious than core buyers, they may have strong motivations tied to diversification or market entry.
• Exploratory Buyers: This group includes companies that are tangentially related to the target’s market or new entrants exploring growth opportunities.

Segmenting buyers ensures a structured approach and allows sellers and advisors to prioritize resources where they are most likely to yield results. This framework is particularly valuable in highly specialized sectors, such as SaaS or e-commerce.

2. Balance Strategic and Financial Buyers

One common question in M&A is whether to focus solely on strategic buyers or to include financial buyers as well. Strategic buyers, such as direct competitors, often bring synergies that enable them to justify higher valuations. However, financial buyers, such as private equity firms and family offices, are invaluable for maintaining deal momentum and creating competitive pressure.

Why Include Financial Buyers?

• Financial buyers are seasoned professionals who understand how complex M&A processes are. Their ability to navigate legal, financial, and operational details often accelerates deal timelines.
• Even if their valuation may be lower due to the lack of synergies, their participation can create a sense of urgency for strategic buyers, leading to better overall outcomes.

3. Broaden the Pool While Maintaining Confidentiality

A broader buyer pool increases the chances of finding the perfect acquirer. However, maintaining confidentiality is critical, particularly when dealing with sensitive information. Advisors (or sellers themselves) must strike a balance between reaching a wide audience and protecting the integrity of the deal.

Expanding the pool can be particularly effective in situations where the most obvious buyers may not offer the best terms. For example, a logistics company looking to sell may find value in engaging with buyers in adjacent industries, such as tech-enabled supply chain platforms. Boopos has found success in exploring unconventional buyer pools for tech companies, uncovering opportunities that competitors may overlook.

4. Prioritize Competitors

Direct competitors often top the list of potential buyers. They are intimately familiar with the market and may see significant value in acquiring the target to expand their market share, reduce competition, or achieve operational efficiencies.

When approaching competitors, it’s crucial to highlight synergies that align with their strategic goals. For example, a competitor may benefit from the seller’s proprietary technology, established customer base, or geographic presence. These factors can drive valuations higher while ensuring alignment between the two entities.

5. Identify Hybrid Buyers

Hybrid buyers, also known as quasi-strategic sponsors, are financial buyers with existing investments in related sectors. These entities combine the financial rigor of private equity firms with the operational insights of strategic acquirers.

For example, a private equity firm with a portfolio company in the healthcare tech sector may be highly motivated to acquire complementary businesses. This dual perspective often allows hybrid buyers to offer competitive valuations while maintaining process discipline.

6. Conduct Rigorous Screening

Not all potential buyers are viable, and conducting rigorous prescreening is essential. Key factors to evaluate include:

• Financial Capacity: Does the buyer have the resources to close the deal? For financial buyers, this may involve reviewing the size of their funds or recent fundraising activities.
• Acquisition History: Have they completed similar deals? A history of successful acquisitions can indicate a higher likelihood of closing.
• Sector Fit: Is the buyer genuinely interested in the target’s industry? Companies with strategic alignment are more likely to engage and offer favorable terms.

This level of due diligence ensures that only serious, capable buyers make it to the negotiation table.

7. Highlight Integration Opportunities

Buyers often seek acquisitions that provide clear integration benefits, whether vertical or horizontal:

• Vertical Integration: Buyers looking to strengthen their supply chain or gain control over critical inputs. For instance, a software provider acquiring a data center to optimize costs and improve service delivery.
• Horizontal Integration: Buyers aiming to expand their product offerings or geographic reach. An example might be a SaaS company acquiring another SaaS provider to cross-sell complementary products.

Understanding and articulating these synergies can significantly enhance buyer interest and valuations.

8. Leverage Niche Specialists

Specialist buyers, such as private equity firms focused on a specific industry, bring deep expertise that generalists often lack. These buyers are more likely to see the long-term value of the target and may offer higher valuations as a result.

For example, a private equity firm specializing in renewable energy would be an ideal buyer for a clean-tech company. Their understanding of regulatory frameworks, market trends, and operational challenges positions them to extract maximum value from the acquisition.

9. Tap into International Markets

Cross-border M&A is on the rise, and quite common already in the tech industry. These buyers may seek to enter new markets, acquire innovative technologies, or diversify their portfolios.

Engaging international buyers requires a nuanced approach, including partnerships with local intermediaries and cultural sensitivity during negotiations. Boutique firms like Boopos leverage their networks and expertise to connect clients with international acquirers, ensuring a seamless process.

10. Iterate and Refine the Buyer List

The buyer list is a living document that evolves as new opportunities and market dynamics emerge. Regular updates and feedback loops are essential to ensure relevance.

For example, feedback from early conversations with buyers can help refine the pitch or identify previously overlooked prospects. This iterative approach ensures that the list remains aligned with the seller’s goals and market conditions.

Building a Buyer List That Delivers Results

Creating a high-impact buyer list requires strategy, diligence, and adaptability. By incorporating the above strategies, advisors can maximize value, enhance deal certainty, and deliver exceptional outcomes for their clients.

For M&A firms, this process is central to their mission of supporting tech companies in navigating complex transactions. If you want to learn more about the sell-side process:

• How to sell your SaaS business in 2025. 
• How the sell-side M&A process works

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