How to Stand Out to Owners Fatigued by Search Funds?

August 10, 2023

by a searcher in Brickell, Miami, FL, USA

With small business owners increasingly bombarded by outreach from search funders, many have grown skeptical or even resistant to engaging with searchers. How can a search fund entrepreneur differentiate themselves in this crowded space? What are the most effective strategies for framing initial conversations and building trust with business owners who may have had negative experiences or preconceived notions about working with searchers?

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Reply by a professional
from University of New Brunswick in Saint John, New Brunswick, Canada

I would echo what others said about humanizing/personalizing the interaction. Lots of listening, asking questions, finding out what they care about and would be worried of if they sold. We like to ask "if we do this deal, and fast forward 2 years, what would messing this all up look like? Then on the flip side - what would us doing an amazing job look like". The only thing I would add is that you should share your core values / vision. One thing that resonates exceptionally well for us with sellers is that we see an opportunity to comp/treat trades people better and that we have a 20 year vision to buy/grow companies in that space. We're not interested in profit squeeze plays or lowest cost worker approaches. We want the best customers and the best people, to get the best (of both) you need to treat them the best. That includes taking time to educate them about things beyond trades skills like passive income, real estate, compound interest, mental health, etc. That's just one example, for you it could be that you're really passionate about innovating or applying your service to a diff industry. Whatever it is, find a way to layer that into the convo, but make sure it's authentic.

Reply by a searcher
from University of Massachusetts Amherst in Saddle River, NJ 07458, USA

I spent a lot of time writing a personal story, chronicling my life journey and all the key experiences that led me to become a searcher / buy & operate a small business, so I have a strong personal why. Practice it. Make sure it's tight <60 seconds so you don't lose them. You want it to be a combination of personal and business experience, so it humanizes and legitimizes you and creates opportunities for connection points with the seller immediately. Be vulnerable, be honest, and be genuine. Smile, ask good questions, and listen. Rinse and repeat as many times as possible.

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