Advertisement

Synergistic Buyer

Last updated: March 22, 2024

What Does Synergistic Buyer Mean?

A synergistic buyer seeks to acquire another company in order to leverage its existing organization such as its administrative platform, sales channels or management team. Synergistic buyers are rapid and long-term growth seekers that use acquisitions to create synergies. They are usually large and established firms in the industry. As a result, their acquisition capital is generated from their internal equity funds.

Advertisement

Divestopedia Explains Synergistic Buyer

The goal of the synergistic buyer is to acquire a targeted company that belongs in the same or a related industry in order to take advantage of economies of scale. However, in some cases, these buyers target a company that has unrelated business because of its synergistic qualities, which can support the synergistic buyer’s existing business organization.

An example of a related industry target would be a company with a proprietary technology, but does not have the resources to take it to market. A large synergistic buyer with a robust sales and marketing platform could look to acquire this business, rather than develop the technology internally.

Advertisement

Share This Term

  • Facebook
  • LinkedIn
  • Twitter

Related Reading

Trending Articles

Go back to top