Lessons from the field
Unexpected Opportunities for Business Buyers: Why Strategic Buyers Pay for Synergy
In late 2020, while many businesses closed for good, a new kind of buyer started showing up: owners whose own businesses were thriving, buying businesses that fit with theirs. Here's what brokers in Ohio, Ontario, San Diego and Auckland saw, what a strategic buyer is, how to find one for any listing, and a free strategic buyer finder worksheet.
Quick answer
A strategic buyer is a company or business owner who buys a business because it fits with one they already own, such as a competitor, supplier, customer or complementary business. Strategic buyers look for synergy: ways the combined business can earn more or cost less than the two apart, by adding locations, making products in-house, reaching new customers or sharing staff and space. Because they can capture value no other buyer can, strategic buyers can often move faster and sometimes pay more than individual or financial buyers. Brokers find them by mapping who would gain most from owning a listing: competitors, suppliers, customers, adjacent businesses and existing owners in the same industry. A free, printable strategic buyer finder worksheet is available to download from this article.
“The new moguls”
Paul Tribble has been a business broker in eastern Ohio for a long time.
“I won't tell you the years because the you'll figure out how old I am!”
Like other brokers working through the pandemic, he was surprised by what he saw in 2020.
“A lot of businesses just closed their doors and gave up. Those empty store fronts and warehouses are not my thing. That's for a realtor. I only deal with up-and-running concerns.”
“And that's when I discovered a new group of buyers who are, I think, going to become the new moguls. They're sort of fearless.”
These buyers already owned businesses or real estate that had held up through the lockdowns. They were making money, and they wanted to invest in businesses similar to the ones they already ran.
Two warehouses, and a buyer investing in the future
“I had a guy buy two warehouse spaces recently. The seller was having a tough time because he was renting space to four or five different clients for the two spaces.”
“The buyer already owns a distribution company and has a really large space. He is convinced that wholesale and direct-shipping is the way to go. So he is investing in the future.”
“He buys places that have clients and income and he can make a change if he wants in the future. Meantime, he got huge bargains on these two spaces. Really big. And the seller was so happy to get out.”
The same story in Ontario, San Diego and Auckland
Vertica CRM provides brokerage technology to more than 200 firms in 26 countries, and in late 2020 we could barely keep up with demand, because our most successful clients couldn't keep up with theirs.
“I was a broker for years so I love talking to my clients to keep an ear to the ground. I had three conversations with three brokerage owners in Ontario, San Diego and Auckland.”
“Each told me that there is a certain buyer out there with income streams who is going on a spree. They think now is the time to go in with low offers and scoop up the business that is somewhat like theirs.”
In Ontario, a convenience store owner with seven or eight stores had kept earning throughout the pandemic. “People never stopped coming into his places because they were essential.”
“So now this C-store guy is picking up two small restaurants. Why? He will use the kitchens there to make more fresh food for his stores and focus the restaurants on take-out. He understands take-away. He has the money to invest, so it makes sense. Real synergy.”
Elsewhere, supermarket owners were looking at taking over larger convenience and dollar stores. A “shaking out” was happening among small and mid-sized businesses all over the world.
“The wholesale business is really strong and they are all asking for new spaces with incomes. I guess even in times like this, the smart, bold investor is going to do well.”
The same is true for brokers. Some of our clients closed because they couldn't adjust to the “New Normal.” Others are thriving. It comes down to perspective, and the ability to adapt.
What is a strategic buyer?
A strategic buyer is a company or business owner who buys a business because it fits with one they already own, and expects the combination to be worth more than the two businesses apart. Paul's distribution company owner and the Ontario convenience store owner are classic strategic buyers: each bought a business that made his existing one stronger.
| Strategic buyer | Financial buyer | Individual buyer | |
|---|---|---|---|
| Who | A business owner or company in the same or a related industry | Private equity, family offices, search funds, holding companies | A person buying a business to own and run |
| Why they buy | Synergy: more revenue or lower costs together | A return on investment, often with growth and a later exit | A job, income and independence |
| What they look at | Fit with their existing business | Cash flow, growth and the management team | Cash flow, lifestyle and financing |
| What they can pay | Sometimes more, for value only they can capture | What the numbers and their return target support | What the business and their loan support |
| Speed | Often fast; they know the industry | Structured process | Depends on financing |
5 kinds of synergy strategic buyers look for
- Vertical: making or supplying what they already sell. The Ontario convenience store owner bought restaurant kitchens to make fresh food for his own stores.
- Expansion: more capacity for a growing business. Paul's distribution company owner bought warehouse space, with tenants and income, for the shipping business he expected to grow.
- Consolidation: buying a competitor or a similar business. Supermarket owners taking over convenience and dollar stores gain locations, customers and buying power.
- New channels: reaching customers a new way. Shifting the restaurants toward take-out put the C-store owner's food in front of new customers.
- Geography: entering a new area with a business that's already running. Buying an established business is often faster and less risky than opening a new location from scratch.
How to find strategic buyers for a listing
For any listing, ask one question: who would gain the most from owning this business? Then work through the list:
- Competitors that want more customers, locations or staff.
- Suppliers that want to own a customer, or secure a sales channel.
- Customers that want to bring a product or service in-house.
- Adjacent and complementary businesses that serve the same customers with something different, like the C-store owner and the restaurants.
- Owners already in your CRM who have bought before, or who own businesses in the same or a related industry.
- Other brokers' buyers. A broker who specializes in the industry may know exactly who's acquiring. (Co-brokering for business brokers.)
Free download: Strategic Buyer Finder (printable PDF worksheet)
Map the strategic buyers for any listing on one page: who would gain most (competitors, suppliers, customers, complementary businesses and existing owners), the synergy each would capture, a quick score for each candidate, outreach scripts and the confidentiality steps to take before you share anything. Download the free strategic buyer finder worksheet (PDF).
Scripts for approaching a strategic buyer
To an owner in a related business: “Hi [name], it's [your name] with [firm]. I represent the owner of a [type of business] in [area] that could fit well with what you already do, for example [the synergy]. Would you like to see a summary? I'd just need you to sign an NDA first.”
To a past buyer in your CRM: “You mentioned you were interested in adding [type of business]. A confidential listing just came up that may fit. Can I send you the teaser?”
Keep it confidential, especially with competitors
- Lead with a blind teaser that describes the business without naming it.
- Get a signed NDA before you share anything identifying, with non-solicitation of employees and customers where appropriate. (Buyer registration and NDAs, signed online.)
- Release information in stages. Competitors see financial summaries first, and customer lists, pricing and staff details only late in due diligence, if at all.
- Qualify them like any other buyer. A competitor who only wants a look at the books is a risk, not a buyer. (How to spot tire kickers.)
Do strategic buyers really pay more?
Sometimes, but not always. A strategic buyer can afford to pay for value only they can capture, such as shared costs, a new product line or customers they can cross-sell to. But they also know exactly what the business is worth to them, and many, like the buyers in this story, go in with low offers. (Lowball offer on your business? When to accept, counter or walk.)
What strategic buyers almost always bring is competition and certainty. In the Q2 2026 Market Pulse survey, 87% of deals over $5 million attracted at least three offers. And according to Axial's 2026 buyer data, the average deal size for corporate acquirers on its platform rose from $5.3 million in 2021 to $7.2 million in 2025. Putting a strategic buyer alongside individual and financial buyers is often the best way to find out what a business is really worth.
How a CRM helps you match strategic buyers
- Record what each buyer already owns, not just what they're looking for, so you can spot strategic fits when a new listing comes in.
- Match new listings to the right buyers automatically, and announce them to buyers whose criteria fit. (15 automations that save brokers time.)
- Online NDAs and staged access to information, so competitors only see what you approve, when you approve it.
- Drip campaigns that keep past buyers and business owners warm until the right opportunity appears. (Email marketing.)
What's changed since 2020
- Strategic and add-on buying is now mainstream. Holding companies, family offices and private equity firms building groups of businesses are a big part of the market. On Axial, family offices and holding companies averaged about 15% and 10% of closed deals over the past five years.
- More individual buyers, too. In BizBuySell's 2026 survey of small business buyers, 54% had never owned a business before, so brokers who bring strategic buyers to the table stand out.
- AI makes it easier to find strategic buyers. AI tools can search for companies in related industries and areas, and Prospect Finder will help brokers build lists of business owners by industry, location and size. (More in our guide to AI for business brokers.)
- Vertica CRM now serves more than 200 firms in 26 countries, and the brokers who adapted in 2020 are among our most successful clients.
Match the right buyer to every listing with Vertica CRM
See how Vertica CRM records what every buyer owns and wants, matches new listings to the right buyers and controls what each one sees. Contact us for a short demonstration.
Schedule a Demo Questions? Call +1 212 381 4994 (USA) or +61 3 8518 4759 (Australia).Frequently asked questions
What is a strategic buyer?
A company or business owner who buys a business because it fits with one they already own, such as a competitor, supplier, customer or complementary business, and expects the combination to be worth more than the two apart.
What is the difference between a strategic buyer and a financial buyer?
A strategic buyer buys for synergy with an existing business. A financial buyer, such as a private equity firm, family office or search fund, buys for a return on investment, usually based on cash flow, growth and a later exit.
Do strategic buyers pay more for a business?
Sometimes. They can afford to pay for value only they can capture, but they also know exactly what the business is worth to them and may make low offers. Bringing several types of buyers to the table is the best way to find the real price.
What is synergy in a business acquisition?
The extra value created when two businesses combine, such as more revenue from cross-selling or new channels, or lower costs from sharing staff, space, purchasing or production.
What are examples of strategic acquisitions?
A convenience store owner buying restaurants to make fresh food for his stores, a distribution company buying warehouse space, or a supermarket owner taking over convenience and dollar stores.
How do business brokers find strategic buyers?
By asking who would gain most from owning the business: competitors, suppliers, customers, complementary businesses, owners already in the broker's CRM and other brokers' buyers, then approaching them confidentially.
Should I sell my business to a competitor?
It can be a good outcome, because competitors may move fast and value the business highly. Protect yourself with a blind teaser, a signed NDA with non-solicitation terms and information released in stages.
How do you keep a sale confidential from a competitor?
Use a blind teaser that doesn't name the business, get a signed NDA before sharing anything identifying, release customer lists, pricing and staff details only late in due diligence, and qualify the buyer carefully.
What is an add-on acquisition?
A business bought to add to an existing company, often by a strategic buyer or a private equity firm building a group of businesses in the same industry.
Why do strategic buyers appear in a downturn?
Owners whose businesses keep earning in a downturn have cash and confidence, and see a chance to buy businesses that fit with theirs at lower prices, as brokers saw in 2020.
How can a CRM help find strategic buyers?
By recording what each buyer already owns as well as what they want, matching new listings to the right buyers automatically, and controlling what each buyer can see through online NDAs and staged access.
Is there a worksheet for finding strategic buyers?
Yes. Vertica CRM offers a free one-page Strategic Buyer Finder worksheet (PDF) for mapping competitors, suppliers, customers and complementary businesses, scoring each candidate, with outreach scripts and confidentiality steps.