Common misconception about buying businesses

There’s a common misconception in the small and mid-market M&A world that buyers drive the market. But they don’t, sellers do. There are lots of buyers out there between searchers, independent sponsors, corporate acquirers, and PE. But there’s always a shortage of quality businesses for sale. Ie. the kind buyers actually want to buy. That creates a structurally permanent seller’s market. It doesn’t mean every seller gets their ideal price or terms. Deals still need to make sense on both sides. But it does mean buyer demand is consistently high, competition among buyers is always strong and sellers hold the leverage early in the process. Sellers are the currency. A lot of buyers underestimate that reality.