Big Picture Deal Terms

Strategic Buyer

A buyer already in your industry. They may buy your business to grow faster, add customers, enter a market, or remove a competitor. Why it matters: Strategic buyers may pay more if they see synergies, but they may also be competitors, so confidentiality and customer or employee information should be shared carefully.

Related terms

Buyer

The person, company, investor, or fund trying to buy the business. Why it matters: Different buyers value different things, so knowing the buyer type helps an owner understand likely questions, risks, financing needs, and negotiation style.

More from Big Picture Deal Terms

Acquisition Advisor Business Broker Buyer Exit Family Office Financial Buyer Independent Sponsor Investment Banker M&A M&A Advisor Private Equity Firm

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