Certain buyer behaviors remain constant, regardless of economic cycle. In the run-up to a liquidity event, it’s critical to understand the behaviors as they relate to three main buyer categories—financial, strategic, and quasi-strategic.

The following video outlines those behaviors, based on William Blair’s decades of experience working with a wide range of buyers and investors as they look to partner with founder-owned businesses.

Video Transcript

Over the last decade, M&A activity has been driven significantly through financial sponsors deploying record levels of dry powder and strategic buyers looking to accelerate growth inorganically. Although activity has slowed recently and markets have been turbulent, deals are still happening—and certain buyer behaviors remain constant.

If you’re a business owner considering a liquidity event, you might be wondering which category is the ideal fit for you—or whether there’s a middle ground between strategic buyers and financial sponsors. William Blair has unmatched interpersonal connections when it comes to the world’s leading private equity firms. With senior-level access, we have proprietary insights in each sponsors’ unique investment criteria, approach, and behavior. Teaming up with a financial sponsor unlocks more than a capital commitment—it provides intellectual and relationship capital to enhance a company’s growth strategy and improve operational efficiency.

Strategic buyers also can provide an opportunity to be part of a larger enterprise—who might be willing to pay more based on synergy potential and strategic fit. When navigating this category, William Blair has first-call access to key decision-makers across multiple sectors and geographies. We think outside the box and creatively evaluate partners that could be a strategic fit in a related sector.

There’s also the hybrid option of quasi-strategic buyers—companies in the same industry that are backed by private equity capital. This combination can lead to more aggressive valuations as part of a larger consolidation strategy.

At William Blair, we understand how to guide business owners and their advisors through the universe of potential partners. Simply put, pre-existing relationships and deep insights have never been more crucial when considering outside investment.