Flowmax has a reputation for buying businesses well.

If you are considering selling your business it is vital to research the different types of business buyers to partner with.

If you’ve reached the point where you are seriously considering selling your business, different types of buyers will bring differing benefits and drawbacks. Before you start to engage with buyers it is important to understand what each type of buyer is looking for, what they are prepared to give and the impact to you and your business.

There are typically 4 types of business buyers: Private Equity, Venture Capital, Trade Buyer and Silent Investor.

4 Main types of business buyers

Private Equity

This type of buyer has their eye firmly on the financial returns and looks for a strong management team in place which they will want to retain and drive. They may plan to combine your business with others to create scale and then sell on. Businesses can find themselves on a three or five year conveyor with no strategy other than rapid growth, strict cost control and limited re-investment. Think in terms of buying a “fix-me-up” property or a bungalow on a large plot then, renovating or developing and selling on.

Venture Capital

A venture capitalist is a private equity investor providing start-ups and early stage businesses with capital for growth in return for a notable equity stake. The pressure is on to achieve high growth within a just a few years. Founders can very quickly lose control and also lose any meaningful stake in the business.

Trade Buyer

Industry buyers can merge with or acquire direct competitors combining assets to gain higher market share. The price that these buyers will usually pay is correlated with the extent they plan to strip costs out of your business or replace your product ranges with their own, with existing staff positions at risk as overheads are cut to make cost savings.

Silent Investor

This type of investor will be wanting a steady stream of dividends in return for a minority stake, leaving you free to run the business without interference providing these dividends keep on coming. You get their cash but little else. They will compare you to other types of investment available to them.

Flowmax has a different approach. When we say we buy well, read what our group of companies have to say about us in our case studies.

When & Why do Entrepreneurs sell?

Building a business is exciting and stressful, demanding a tremendous amount of hard graft and dedication. It is probably one of the most pivotal moments in many business owner’s lives. Some being natural entrepreneurs with a career founding numerous business ventures, some who want to work for themselves and others who simply wanted to provide a brighter future for themselves and their families.

Some will have a roughly defined exit plan decided at the outset for purely financial motives. However, many look to sell part or all of their business due to changes in lifestyle and circumstances which is the catalyst to sell.

Main Reasons Business Owners & Entrepreneurs sell:

Owner-Managers who have sold to Flowmax

Richard Stammers - MD, Essco Group

Having grown Essco Controls successfully over the last few years, I took the decision to look for a partner to invest in the business. Once a family business reaches a certain size the owners have to decide whether to try and push on to the next level alone or to bring in resource to help them grow. Having looked at several options Flowmax stood out as the most suitable suitor. They allow business owners complete discretion on how to run the business day to day whilst at the same time allowing us to benefit from being part of a much larger group.

Anthony Verhulst - MD Petroy BV, NL

I built Petroy as an International Trade company specialized in engineering and marketing of innovative technical products. The combination of "innovation" and "international marketing" is challenging and exciting. After 25+ years of accomplishments Petroy needed a "guardian" to keep on the legacy and we found in Hytek part of the Flowmax Group the ideal "safe harbour" to assure continuity for the long term. Stakeholders were enthusiastic about future synergies and as of mid 2019 Petroy has become a proud member of the Hytek Group of companies.

Commonly asked questions about selling & partnerships

Take a look at our FAQ questions below, or get in touch with our team for bespoke enquiries.

FAQ's on selling & partnerships

We associate with the manufacture, import and distribution of medium technology fluid management and control products, renewables, pharmaceuticals and technical products.

Each business continues to be managed locally, with input and collaboration from the Flowmax head office. Each team has a true sense of ownership in their destiny and success.

Please get in contact for further information.

Relevant information:

Talk to our team

If you're thinking about selling your business and want to find out more, our team will be happy to answer your questions.
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Companies within the Flowmax Group.