Strategic buyers and financial buyers are the two main archetypes of acquirers in M&A, valuing targets differently and structuring deals differently. Strategic buyers are operating companies acquiring for synergies, capabilities, market access, talent, or product fit (Salesforce buying Slack, Adobe attempting to buy Figma, Microsoft buying LinkedIn). Financial buyers are private equity firms, growth equity firms, or other capital pools acquiring primarily for financial returns (Vista acquiring Marketo, Silver Lake buying various companies). Each archetype also treats management teams differently. Understanding which type of buyer is pursuing your company shapes how you negotiate.
The core difference:
Strate...