I have been involved in both processes. Depends on circumstance and situation, market, how niche the industry, sometimes the public just won't understand a certain sector and ascribe the valuation that the seller could find with a more bespoke sale process targeting those in the industry or industry adjacent. MBB recently advised a small family glass manufacturing/ supply business that sold off market which was in this situation. On the other side, as an acquirer, the lower hanging fruit is with public listed with brokers as they tend to be serious sellers and have at least gone through the motions, discussions and either warm or onboard with selling. Approaching sellers cold, off market is another approach but can be way too much frictions the outcome desired and therefore less efficient given extra step of weeding out the serious sellers.

A combination of direct outreach and broker relationships appears to be most common (and successful) in Australia. For direct outreach, response rates are much higher from more tailored approaches with specific angle, interest or knowledge of the sector. Follow up emails are important, as owners typically don't respond initially. Inboxes are becoming flooded with generic approaches, so tailoring sets you apart.