Financial buyer

A buyer that purchases a business as an investment to earn a return. A private equity fund is one example.

Also called Financial acquirer

Financial buyer in practice

Hypothetical example: a fund buys a repair company, helps it add locations and later sells its stake. An industry buyer might buy the same company to serve its own customers in more places.

What to check

Financial and strategic motives can overlap. A fund-owned company may buy another company because the two work better together.

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