Strategic Purchaser - Typically an acquirer that will totally absorb and rationalize the business into its current operations or will be vertically or horizontally integrated with the acquired business post transactions. There usually are many synergies involved in this type of transaction which may allow the acquirer to penetrate a new market or give the purchaser access to new technology. This purchaser will typically pay more than other purchasers in this type of transaction.

Financial Partner / Purchaser - This may be a private equity fund or another financial sponsor that is looking to make an investment for a finite period of time. This investor is transaction oriented and is looking at ways to improve the equity value in the business in a relatively short period of time. Additional capital is often available to grow the business through acquisition or capital expenditures and working capital addition for growth initiatives. Valuations are generally lower than can be realized from a strategic purchaser.

Single Purpose Purchaser - This is neither a Strategic or a Financial purchaser but an individual or a corporation that is making an acquisition to own a business and is not bringing any synergies to the acquisition.

Management Buyout - Often results when a family owned business or a Strategic/Financial buyer looks to liquidate its position. Due to the high level of leverage generally required for this type of transaction, advice on capital structure can significantly increase the chances of success.