A strategic buyer is a company or individual that acquires another business to achieve specific strategic objectives, such as expanding market share, entering new markets, or gaining access to new technologies or resources. Unlike financial buyers, who primarily focus on investment returns, strategic buyers look for synergies that can enhance their existing operations.

Characteristics:
– Long-term focus: Strategic buyers are typically interested in the long-term benefits of the acquisition, rather than short-term financial gains.
– Synergy realization: They seek to create value through synergies, such as cost savings, increased revenue, or enhanced capabilities.
– Industry knowledge: Strategic buyers usually have a deep understanding of the industry in which they operate, allowing them to identify potential acquisition targets that align with their business goals.
– Integration capability: They often have the resources and expertise to effectively integrate the acquired business into their existing operations.

Examples:
– A technology company acquiring a smaller startup to gain access to innovative software solutions that complement its existing product line.
– A large retail chain purchasing a smaller competitor to increase its market presence and customer base.
– A pharmaceutical company acquiring a biotech firm to enhance its research and development capabilities and expand its product pipeline.