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Preparation and Negotiation

What Strategic Buyers Evaluate

The multiple is a consequence. Before that, a strategic buyer evaluates fit, execution risk, and what the company does better than they can.

By JK Capital | August 2026

← ArticlesPreparation and Negotiation5 min read

A strategic buyer compares an acquisition with the alternative of building the same capability in-house. That's why they assess competitive position, quality of the client portfolio, dependence on key personnel, and the potential for synergy capture.

Execution risk weighs as heavily as financial results. Clear governance, autonomous teams, and documented processes reduce perceived risk and support the valuation.

Understanding the buyer's thesis allows for building a tailored narrative, without making promises the business cannot deliver on post-closing.

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