Question

Which of the following statements is correct? Financial buyers are institutions that provide capital and are...

Which of the following statements is correct?

Financial buyers are institutions that provide capital and are not operators.

Financial buyers are operating partners that try to create synergies.

Strategic buyers are asset managers that are trying to time the purchase or sale of a business.

Strategic buyers are institutions that provide capital and are not operators.

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Answer #1

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Financial buyers are interested in long term investing and are not operators of the business, they look for the company which is well managed and invest in it.

The strategic buyers are the operators of the company, they are often competitors, suppliers or customers of the business. The goal is to find the companies whose product or services can create Synergy for existing business.

Answer: Financial buyers are institutions that provide capital and are not operators.

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