Strategic buyer
A strategic buyer is an operating company that acquires for fit with its own business.
In a sale
Does a strategic buyer pay more?
It can: a strategic buyer pays for what the business does for its own, which can mean a higher price than a financial buyer would offer, along with slower diligence and plans that change the business after closing. It acquires a capability, a customer base, or a competitor. A process that includes strategic buyers alongside financial ones lets each value the part of the business it cares about.
Where it comes up
Read it in context
In the articles
- Same business, two outcomesTwo identical businesses, one prepared and one not, sell for very different prices.
- When a buyer calls firstAn inbound offer is information, not a decision.
- Strategic, platform, add-on, sponsor: who buys whatDifferent buyers pay for different things. The process should include several.
- Real estate and the operating businessOwner-held real estate is a second transaction inside the first.
- What the buyer's memo says about youBefore any offer, someone writes an internal memo. Here is what is in it.
See the terms with your own numbers
The Go-To-Market Analysis (GTMA) builds the file a buyer would build on your business, before a buyer does.