Happy Monday! Wanted to touch on a conversation around thesis development that I saw happening during the last couple of weeks of conferences:
Thoughtful searchers and investors are thinking about buyer-thesis fit. Here are 6 reasons why it matters:
1) With more searchers entering the industry on a regular basis, your ability to stand out is becoming more important. The most effective way to get noticed is to have a convincing “why me” argument that aligns your skills, interests, and experience with your target company.
2) Strong buyer-thesis fit can also ensure smoother connection with sellers, and better negotiations based on a shared pool of industry knowledge. Sellers want to turn their company over to an expert who understands the value of what the seller has done so far.
3) Financing is often a foundation of acquisitions, and stronger alignment boosts lenders’ confidence in a transaction. When lenders underwrite a loan for a small business acquisition, they take a close look at how well the buyer and the business match up.
4) Operating becomes much simpler when buyers have a deep understanding of their fields going in. Knowledge of industry best practices and market dynamics can generate earlier success.
5) Aligning one’s passion and expertise with business acquisition can lead to greater personal satisfaction. When challenges arise (as they inevitably do in business), this internal/external match can serve as a source of resilience and motivation to persevere.
6) Success involves not only recognizing one’s strengths but also admitting and addressing knowledge gaps. By seeking advice or collaborating with experts, you can assemble a comprehensive team that helps you overcome weaknesses in your resume.
Hope this was helpful! Make sure to check out my conversation with ^ this upcoming Thursday at 2:00 CT on Private Market Labs Insights, streaming live on Searchfunder!