A company in your industry buying yours for synergy, not just financial return — usually pays the highest price.
A strategic buyer is another business — usually larger, often a competitor, customer, or supplier — that wants to acquire yours because it fits their existing strategy. They want your customers, your geography, your capabilities, your team, or your product to plug into what they already do. The math behind their offer isn't just "what return will I get on this investment?" It's "what is this business worth to me specifically?" That answer often produces a higher number than a pure financial buyer would pay, because the strategic buyer captures synergies — cross-selling, cost savings, market expansion — that other buyers can't.
Strategic buyers typically pay more than financial buyers for the same business — but they're harder to find, slower to move, and more selective about fit.
Strategic buyers ask a different question than financial buyers — not "what return will this generate?" but "what is this business worth to me specifically?"