The Hidden Hand in Business Sales: Understanding the Strategic Buyer

In the spring of 2012, a family-owned logistics firm in the Midwest was preparing to wind things down. The founder—let’s call him Frank—had spent 35 years building his company from a single box truck into a regional force with 130 employees and a reputation for ruthless efficiency. He figured the business was worth something—after all, the books looked good, the revenue was solid, and the trucks ran on time.

But Frank was thinking in numbers. He imagined a buyer would look at his EBITDA, apply a conservative multiple, and cut him a check. End of story.

And he might’ve been right—except that one day, a representative from a much larger shipping conglomerate came knocking. They weren’t particularly interested in Frank’s EBITDA. What they wanted was something else: access. Access to a regional network that would’ve taken them five years to build. Access to routes that couldn’t be replicated. And access to a customer base that happened to overlap perfectly with one of their fastest-growing product lines.

The offer came in 40% higher than what Frank expected.

That’s the thing about strategic buyers: they don’t just buy what you’ve done—they buy what they could do with it.

A Different Kind of Buyer

In business school, you learn that buyers are rational, number-driven, and concerned with return on investment. That’s true—for some.

But strategic buyers operate on a different wavelength. They’re companies, not investors. They’re not looking for a passive income stream. They’re looking for leverage—ways your business can unlock value in theirs.

Where a financial buyer asks, “How much profit does this generate?”, a strategic buyer asks, “What could we become if we owned this?”

Why They Pay More

There’s a famous concept in behavioral economics called “value-in-use.” It’s the idea that something’s worth changes depending on how it will be used.

To a financial buyer, your business is a standalone investment. To a strategic buyer, it’s a puzzle piece.

Let’s say your business generates $2 million in EBITDA. A financial buyer might offer you $8 million based on a 4x multiple. But a strategic buyer might see $5 million in synergy savings—maybe they’ll eliminate redundant HR departments, streamline IT systems, and cross-sell their existing products to your customers. Now your $2 million business becomes a $7 million profit center overnight.

They’re not buying your business. They’re buying a shortcut to their next chapter.

What They’re Really After

When you peel back the layers, strategic buyers are rarely after your income statement. They want the intangibles—the things you don’t see on a balance sheet:

• Your customer relationships

• Your reputation in a niche market

• A proprietary process you’ve refined over a decade

• Your team—the people who know how to make things work

• A location, a permit, a supplier contract—a foothold they can’t get elsewhere

  
  

They’re playing chess, not checkers.

The Strategic Buyer vs. the Financial Buyer

Think of it like this.

You’re selling a house. A financial buyer walks in and says, “Nice hardwood floors. Good bones. I’ll offer you $500,000 based on comps in the neighborhood.”

A strategic buyer walks in and says, “If I buy this place, I can knock down that wall, connect it to the property next door that I already own, and turn the whole thing into a boutique hotel.”

So they offer $750,000. Because they’re not buying your house. They’re buying what it could become in their hands.

Positioning for a Strategic Exit

This is where most business owners miss out.

They think value is created by doing more—more revenue, more margin, more clients. But for a strategic buyer, value is created by fit.

You have to look at your company not as an end product, but as a bridge—a bridge to something someone else wants.

And to do that, you need to:

• Understand what makes you strategically valuable. Not just what you do, but how your business fits into someone else’s plan.

• Know who your buyers are. Not just any company, but the right company—the one for whom owning your business solves a specific, expensive problem.

• Tell the right story. This isn’t a pitch deck. It’s a narrative about potential. A well-structured, well-told story about what could be.

  
  

Why It Matters Now

There’s a quiet shift happening in the market. Strategic buyers are on the move. Industries are consolidating. Companies are looking for acquisitions not just for growth—but for survival.

And the owners who understand how to speak the strategic buyer’s language—those are the ones who will walk away with premium deals, faster closings, and exits that honor the legacy they built.

One Last Thought

Frank didn’t know what a strategic buyer was when he started getting serious about selling. But he was smart enough to listen, to ask questions, and to realize that value isn’t always measured in spreadsheets.

The irony? His buyer never looked at his EBITDA. Not once.

Want to know what your business might be worth to a strategic buyer?

Schedule a Business Exit Session—we’ll help you uncover the hidden value in your company and map out your playbook.

About The Author

Marc Lowe is the Founder & President of In The Money Retirement Planning. He is a Certified Financial Planner and member of NAPFA National Association of Personal Financial Advisors, XY Planning Network & Fee-Only Network. He works with retirees and those approaching retirement. He has over a decade of experience helping these folks grow their net worth, organize their finances and build better lives for themselves and their families.

CEO & Founder of In The Money Retirement Planning

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