Strategic Buyers vs Financial Buyers

Strategic Buyers vs Financial Buyers

Strategic Buyers vs Financial Buyers
Shoot The Moon

 
 
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The strategic buyer and the financial buyer: how do they differ? In this episode, Mike & Ryan discuss each buyer in detail.

A financial buyer is typically one who buys the business to get a reasonable return on their investment quickly. This buyer is driven by certain rates of financial return and may be looking at a portfolio of companies to buy.

A strategic buyer is looking to grow through buying a business that is strategically aligned with theirs, that fits into their business objectives, product & services set, culture, financials, geography, and other criteria.

At Revenue Rocket we look at 3 main criteria when working with strategic buyers and sellers:

  • Cultural Fit
  • Strategic Fit
  • Financial fit

If the combination has an aligned strategy and culture, they can usually find a path to financial fit. A strategic buyer is looking for capability enhancement to complete or broaden their offering.

 

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