Strategic Buyer or Financial Buyer?

Strategic Buyer or Financial Buyer?

March 10, 2021 by investor

In seeking a buyer for the company, there are two basic choices: a strategic buyer or a financial buyer.  

The strategic buyer is typically a company in your industry that is seeking to acquire technology, teams, a customer base, or brands.

They will look at those aspects of your business for a potential fit with their growth plans.

If your company has built value in any of these areas, you can open discussions with potential acquirers.

Financial buyers look at cash flow, cash reserves, return on capital, and other financial indicators for a potential fit.  

These buyers are agnostic to your industry or market positioning but look at it purely as a financial play.

There’s also the possibility of splitting up the company so the strategic buyer finds the value relevant to them while the financial buyer finds the part that works for them as well.


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