Definition
The two big categories of business buyers are strategic and financial, and they evaluate your business completely differently. A strategic buyer is another company that wants your business because it complements theirs. A financial buyer is an investor who wants your business because it's a good investment. The difference shows up everywhere: how they value the business, how they structure the deal, how fast they move, what they care about in diligence, and how they'll run the business after closing. Most sellers know they want to "find a buyer." Few sellers think clearly about which type of buyer is the right one for their specific business — and the wrong match wastes months of process.
What it means for you
The two big categories of buyers value businesses on completely different math — and most sellers run their process without knowing which type is the right one for their specific business.
The buyer’s lens
Strategic and financial buyers are essentially in different businesses themselves — one is buying capability, the other is buying cash flow.