What Does Strategic Buyer Mean?
A strategic buyer is a type of acquirer who is in the same industry/business as the target company. Unlike a financial buyer, a strategic buyer looks for businesses that can be quickly integrated with its main operations. A strategic buyer typically will pay a valuation premium for a business because it attributes value to the synergies that can be generated by adding a complementary business to its existing operations. The value and probability that each strategic buyer assigns to the synergies can vary greatly.