A strategic buyer is a buyer acquiring a target for operational, market, or competitive reasons, typically an existing operator in the same or adjacent industry. Strategic buyers value targets based on the combined post-acquisition business (including expected synergies), and they are often willing to pay higher multiples than financial buyers because the target is worth more to them than as a standalone business.
For Australian sub-$20M sellers, strategic buyers can be the highest-paying buyers, but they may also bring more aggressive integration plans, faster decision-making, and less flexibility on deal structure.