What is difference between Strategic and Financial Buyer. Let me get more clear what I want. If question comes on exam how to get idea that buyer is strategic of financial?
Reading 39, Q14 may be example of such a scenario.
Strategic buyers are in the same business as the one they’re purchasing, or in a related business. They plan to take advantage of synergies between their existing business and the business they’re buying. A clothing manufacturer buying a textile shop would be an example of a strategic buyer.
Financial buyers are not in the same business as the one they’re purchasing, so they cannot take advantage of synergies. A private equity firm buying a textile shop would be an example of a financial buyer.
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You’re welcome.