What are Strategic Investors?
Strategy investors will provide different equity and debt solutions to businesses that correlate to their own business and see an overlap in services, customers, and products. Strategic investors sometimes ask for a first right of refusal if the company owners try and sell the business.
Private equity investors buy partial or complete ownership stakes in mature businesses, but where there is an opportunity to expand the business, make it more efficient or a strategy that the current owners do not want to or cannot take. These investors own their management teams and board directors and often provide advisory support and consultancy.