Understanding Business Buyer Archetypes

June 11, 2025

Hey ,

When founders ask me, “What’s my business worth?” I answer with a question:
“To who?”

Because the truth is, all business valuations are partly subjective. You can of course show off the balance sheet and assume an industry average profit multiple, but ultimately the company will have different values to different buyers, depending on what they’re really after.

And if you don’t understand that, you’ll waste time chasing the wrong exit.

Here are the three most common buyer archetypes, how they think, and what they pay for:

1. The Strategic Buyer

Think: Bigger company looking to absorb you
They want: Synergies, market share, brand, or tech

✅ Will pay top dollar if your business plugs a gap in theirs
✅ Often less focused on your profit and more on what you unlock for them
✅ May retain your team or product—but usually not you

💡 Example: A software firm buys your small SaaS not for its revenue, but to eliminate a competitor or speed up their roadmap

🔑 Tip: Think like solving a puzzle for them—what does your business make better for the larger company? People? Systems? Geographical expansion?

2. The Financial Buyer

Think: PE firm or individual investor
They want: A cash-flowing asset they can improve or flip

✅ Focused on EBITDA, margins, and reliable systems
✅ Often wants you to stay for a handover period
✅ Pays based on profit multiples (usually 3–6x)

 Example: A private equity firm buys your business doing $500K profit to grow it and exit in 3–5 years at a higher multiple

Note: These guys have a set of parameters for what they want and they stick to it. make sure you’ve ticked all the boxes before you begin for the best price. Clean financials, strong ops, and recurring revenue will raise your multiple. Best thing you can do is have lunch with a few (always more than one) PE firms and ask them what they want to see for an acquisition

🧘‍♂️ 3. The Lifestyle Buyer

Think: A corporate escapee or solo operator
They want: A stable, manageable business to live their life on their own terms

✅ Wants a simple, proven model
✅ Prefers low overhead and minimal staff
✅ Variable, might give you a great deal or lowball you

💡 Example: A burnt-out exec buys your local agency to replace their income and regain freedom

🔑 Tip: Highlight quality of life benefits, flexible hours, and ease of transition. I’ve heard some people say this type of buyer closes quickly, but on their first deal they will often get cold feet or do excessive due diligence so keep that in mind

So What Does This Mean for You?

Before you even think about valuation, decide which buyer you’re building for.

Because the same business can be worth:

  • $10M to a financial buyer

  • $18M to a strategic buyer

  • $4M to a lifestyle buyer

Your growth strategy, systems, even your marketing should shift depending on who you’re planning to exit to.

Want to Attract the Right Buyer?

Next week, I’ll break down how to tell if your business is a sellable asset or glorified job, and how to turn your business from a job into an asset—so you appeal to all three buyer types (and can pick the one that pays the most).

Hit reply if you’re not sure which buyer your business fits today—I’ll help you figure it out.

— Unlock Wealth Weekly Team