In general, a distinction can be made between two types of investors - the strategic investor and the financial investor.
Strategic Investors
Behind the overarching goals of the strategic investor (such as growth, diversification, technologies and cost leadership) are motivations such as the acquisition of a new product line.
The goal may also be to buy out a competitor and consolidate the market. Access to new technologies or patents or the avoidance of customs duties can also be reasons for acquiring a company.
As a rule, the goal is to integrate the acquired company or part of the company into the existing company and thus to keep it for a long time.
The buying side hopes for great synergy effects that can be exploited. These can be realized through consolidations and mergers.
Financial Investors
A financially driven investor usually has other goals. His aim is to maximize EBITDA in order to subsequently sell the company at a profit.
The holding period of the acquired company is therefore short, which means that full integration into the existing company is not recommended.