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What is the difference between a strategic buyer and a financial buyer?

  1. A A strategic buyer seeks synergies with an existing business; a financial buyer seeks investment returns
  2. B A financial buyer is always larger
  3. C A strategic buyer uses more debt
  4. D They are identical
Answer

A strategic buyer seeks synergies with an existing business; a financial buyer seeks investment returns

Strategic buyers can often pay more because synergies increase the value of the target to them specifically.

All Investment Banking MCQs

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