Happy Monday! Starting the week off right with a deep dive into #smb #thesis building. Here's how to craft an effective thesis that will capture the attention of brokers and help you focus on generating the right #dealflow

Dedicating time to crafting a solid thesis can be the difference between a successful acquisition and a lot of wasted effort. Buyers with a defined thesis appear more serious and professional in the eyes of brokers, investors, and sellers. Here's how to build one:

A well-planned search thesis offers multiple benefits:

  • - It gives a clear direction, helping you avoid unsuitable opportunities.
  • - It facilitates communication of your goals, distinguishing you from less serious searchers.
  • - It builds credibility by showcasing your in-depth understanding of the market.
  • - Brokers often favor searchers with clear, well-articulated theses as they streamline the seller matching process.
  • - Sellers are assured they’re dealing with serious, well-prepared buyers.

A strong thesis steers clear of clichés like “preserve your legacy,” instead focusing on the searcher's background, financial edge, and desired transaction structure. A strong pitch demonstrates to counterparties that the searcher is ready to transact.

There are many frustrated searchers who zero in on a specific-sized deal instead of focusing on fundamentals such as deal structure, industry and geography. In today's market, it's challenging to compete for top deals without offering a compelling "why".

Notably, searchers do not need to have a single thesis to be successful. However, even searchers that are relatively industry-agnostic can improve their odds by crafting multiple messages and delivering the one that is most relevant to the broker and seller in front of them.

In conclusion, crafting the ideal search thesis is both an art and a science. The most successful searchers blend a methodical approach grounded in personal experience and robust market knowledge with a relentless curiosity and openness to new possibilities.

Hope this was helpful! Make sure to check out our conversation with Tristan S. Maher on Thursday at 4:00 CT to get more insights from the sell side!