Strategic vs Financial Buyer
The two big categories of business buyers — and why knowing which one you're talking to changes everything.
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.
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.
Strategic and financial buyers are essentially in different businesses themselves — one is buying capability, the other is buying cash flow.
Find out what a buyer would see in your business — before you talk to one.
The Exit Desk free assessment takes 2 minutes. If you'd rather see what a full report looks like first, read a sample.
