A financial buyer is a buyer acquiring a target as an investment, with the expectation of generating returns through operational improvement and a future exit, rather than through operational integration. The category includes private equity funds, family offices, search funds, independent sponsors, and certain individual investors.
Financial buyers typically value targets based on standalone operating performance (without strategic synergies), and they tend to be more disciplined on price than strategic buyers. They are often more flexible on deal structure (rollover equity, earnouts, management retention) because their investment thesis depends on operational continuity.