---
title: "What Is Financial Buyer? Private Equity Glossary"
description: "A financial buyer is an investor, such as a private equity firm, that buys a company mainly to grow its value and sell it later."
url: https://capstreet.multisites.ai/glossary/financial-buyer
publisher: Capstreet
phone: +1-713-332-2700
contact: https://capstreet.multisites.ai/contact
---

Fundamentals

# Financial Buyer

A financial buyer is an investor, such as a private equity firm, that buys a company mainly to grow its value and sell it later.

A financial buyer invests for a return. It is not an operating competitor. Private equity firms are the best known financial buyers. They buy a company, help it grow and sell it later.

For example, a private equity firm buys a services company. It adds a sales leader, upgrades software and buys two small competitors. The company stays independent and keeps its brand.

For owners, a financial buyer often means your team stays, your brand stays and you may keep a stake through [rollover equity](https://capstreet.multisites.ai/glossary/rollover-equity). Financial buyers also bring capital and management help.

The trade-off is that they plan a later sale, so growth targets and reporting can be tighter. Read both sides in [private equity vs strategic buyer](https://capstreet.multisites.ai/compare/private-equity-vs-strategic-buyer). Related terms are [strategic buyer](https://capstreet.multisites.ai/glossary/strategic-buyer) and [private equity](https://capstreet.multisites.ai/glossary/private-equity).

[Read nextPrivate equity vs strategic buyer: which one should buy your business?](https://capstreet.multisites.ai/compare/private-equity-vs-strategic-buyer)

## Related terms

-   [Strategic Buyer](https://capstreet.multisites.ai/glossary/strategic-buyer)
-   [Private Equity](https://capstreet.multisites.ai/glossary/private-equity)
-   [Rollover Equity](https://capstreet.multisites.ai/glossary/rollover-equity)

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