How do strategic-buyer multiples differ from financial-buyer multiples?

typically pay 1–2x EBITDA more than financial buyers, because they expect synergies. Example range: strategic 10–13x, financial 8–10x for the same sector. Financial buyers (PE sponsors): more disciplined, return-focused (a 20%+ target IRR demands multiple discipline). Consequence for valuation: if your buyer universe is mixed, bucket it separately — strategic multiples for a strategic-bid estimate, financial multiples for the PE floor. Pitfall: PE deals in hot markets can reach strategic multiples (a cheap-debt effect) — contextual caution. Example: large-cap PE sponsors typically pay 9–10x for an industrial mid-cap; strategic players (global industrial and consumer majors) 11–13x.