Strategy Consulting

There are many reasons for a company to find a new partner. Sometime company need to expand business, cash inflow or to increase market reach. Knowing the difference between the strategic partner and financial partner help for the organization to develop the business strategy which ease the decision making process. Strategic partners may be one of the customer, competitors or supplier. The main focus of the strategic partner is long term outlook on your business, economics of scale, efficiency etc. They are more based upon the product line, market share and customer base rather than only earnings. So the strategic partner value your company more than earnings because they think as long term perspective.

Whereas, financial partner look for favorable return and how much earning they get for each penny they invest in the company. Financial partners may not have the knowledge of the business that your firm is in. The aim of the financial partner is to find the company that growth and cash flow generating capability. The financial partners are generally private investor, hedge fund, venture capital firm.