Who is the Right Buyer for Your Business? Strategic Vs. Private Equity

The label “Private Equity Buyer” and “Strategic Buyer” are frequently brought up when contemplating prospective buyers for a business. Both have their advantages and disadvantages but, depending on the details of the deal, a sale to one or the other has important implications, both in valuation and in deal structure. A competent investment bank will spend significant time analyzing the potential impacts and educating the seller on all the variables concerning each type of buyer. Each has a different position in the market, with different motives for buying and different opportunities for the seller. Access a quick overview outlining the pros and cons of each option here.