M&A Boot Camp booklet 2023 - Flipbook - Page 12
Strategic vs. Financial Buyers
Strategic
Financial
Buying entity:
Operating company
(e.g., GE, eBay)
“Shell” corporation controlled by
a limited partnership “fund”
managed by a private equity
“sponsor” (e.g., KKR, Blackstone)
Acquisition currency:
Cash or buyer's stock
(or combination)
Cash
Leveraged?
Sometimes
Typically
Will target's senior
management continue with
buyer after closing?
Sometimes
Typically
Will target's senior
management have equity
interests in buying entity?
No
Typically
Hogan Lovells US LLP
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