Search Criteria - Alternative Strategies

September 05, 2025

by a searcher from Rice University - Jesse H. Jones Graduate School of Business in Austin, TX, USA

I am about three months into my search in Texas. This community has posted great advice and I have followed most of it; reading popular books, networking, signing up for conferences, combing through brokerage sites, and reaching out directly to brokers. So far I’ve identified around 10 opportunities and built models on all of them. That exercise helped me refine my criteria and narrow the list down to 2 real contenders. However, I always find myself pulling back, either because I don’t feel like I’ve fully mitigated the risk. or I realize I’m missing something in the operational game plan. My point is, numbers can look great on a piece of paper, but that does not mean anything. Operational execution is pivotal. My background is in finance, and private equity, so I feel confident in my ability to bring specific value to an acquisition target, but I also know that I am not an operational expert in every field that I am searching in. Which leads to my question - has anyone here had success flipping the search strategy around? Instead of starting with identifying deals or industries, has anyone led with finding strong management teams through networking first, and then gone looking for businesses in their field? I am trying to find a unique way to search that would increase efficiency / success probability, and would appreciate any feedback.

Reply by a searcher
from Emory University in New Orleans, LA, USA

"...I don’t feel like I’ve fully mitigated the risk..." Welcome to the search/SMB buying game friend. Numbers look fantastic because of the leverage and high risk/reward nature of SBA. Buying into an industry you've never actually worked in will always carry an extremely uncomfortable amount of risk, but many have done it with success (as well as some failures). It sounds like what you're describing is a bit like an industry-focused search -- narrowing down to 2-3 areas where you can truly invest time networking with operators, understanding the nuances/nooks/crannies of the industry you would never learn in P&Ls/online, and potentially finding an experienced operator/GM to work with. Have heard traditional search funds shifting more towards industry thesis-driven models for this reason. Certainly does minimize risk at the cost of narrowing deal flow, which could work out depending on your geo/size constraints.

Reply by an investor
from McGill University in San Diego, CA, USA

Great question! People in search usually pick industries, then look for companies and later wonder “how will I actually run this?”. If you start there, and focus your search where you’ve got some edge or “secret sauce,” you’ll de-risk the deal and spot promising opportunities faster. That usually means you can move with more conviction—and increase your odds of closing. Adjacent, you might enjoy this video (https://www.youtube.com/watch?v=QghV97IsDpI&t=573s)... lots of sourcing tools to dig in to... but more importantly, check out how smooth the first call went with the business owner at the end of the video... and that's because he was searching in an industry he had plenty of experience in, and knew the questions to ask out of the box... Much easier to close when you know what to look for. Best of luck with your search

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