Approaching Target Companies

April 19, 2021

by a searcher from Indiana University (System) in Dallas, TX, USA

What approach do you take as a searcher to getting an initial conversation with a target company? Do you always try to reach the CEO? How? Do you try by phone? LinkedIn? Other? What is the approach, i.e. "...I'm looking to buy a company like yours..." or something different? It seems like a tricky first conversation.

Thoughts greatly appreciated!

Drew

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Reply by a searcher
from University of Wisconsin in Los Angeles, CA, USA

Reach out to the CEO directly. I prefer phone for high priority targets because it is better for building a connection, but email is good for broad outreach because it will act like a filter with only interested sellers responding. Search online for the CEOs direct phone line or email address. There are a lot of good resources to find contact information including Google, Relpro, Linkedin and zoominfo. If you cannot find the CEO's contact information, call their office, and confidently ask to speak with the CEO by his first name. CEOs of good businesses get many calls and emails from business brokers and other potential buyers, so you need to differentiate and bring more than money to the table. I would figure out an angle that would differentiate you from other buyers. I have had the most success when targeting companies in industries where I have significant experience, I have researched the industry extensively, and I have created a vision/plan for what I want to build. Then I call the CEO saying I am an investor and operator in that industry outlining my experience, I tell the CEO I am looking to partner with a company in that industry to build a business based on my vision, and then say I am impressed with what the CEO has built and ask if the CEO would tell me more about his story. Later in the call after building rapport ask if the CEO has ever thought about selling the business or bringing on a partner. If the CEO is not interested, which will happen frequently, maintain the relationship because the CEO could be a valuable source of knowledge and may be interested in selling later.

Reply by a professional
from Wayne State University in Detroit Metropolitan Area, MI, USA

Wondering if anyone has tried marketing via mail by sending bigger envelops/packages directly to the owner to be more noticeable.

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