Search Update - August Recap

As August wraps up, I wanted to share a brief update on my search: what’s happening, what’s working, what I’m adjusting, and what I’m looking forward to as we head into September. Search Status Momentum picked up in August. The pipeline expanded meaningfully, broker activity increased, and I saw a stronger mix of opportunities across industries and geographies. Proprietary outreach officially launched this month, and while initial engagement was muted due to a technical issue, fixes are in place and performance is improving. Pipeline Snapshot 71 new deals were added, up 61% from July and on pace with my monthly goal. Two proprietary referrals entered the pipeline: A union apparel producer, and an electrical contractor/distributor serving industrial and manufacturing clients. Brokered volume is accelerating, with more owners coming to market after finalizing mid-year results. Common pass reasons: - Valuation gaps - Insufficient historical financial performance - Too small after determining true EBITDA - Project based revenue/new construction exposure What’s Working Qualifying opportunities faster has been a clear improvement. Driving to a valuation range early helps me surface alignment (or misalignment) sooner and focus on higher-quality fits. I’ve also refined my valuation framework: 3.5x for strong businesses, 4x for very strong, and 5x for exceptional. On the sourcing front, the combination of an email drip campaign with LinkedIn messaging has started to generate real traction, and network-driven referrals continue to produce high-quality leads. What I’m Adjusting Early results from my proprietary email campaign were disappointing, and a deeper review revealed why: my DKIM record wasn’t properly aligned, and my DMARC policy quarantined legitimate emails. With those fixes in place—and as the domain builds credibility—I expect engagement rates to climb steadily in September. To complement email and LinkedIn, I’m preparing to launch a direct mail strategy in September, sending 15–20 highly tailored letters each week to create warmer, more personal touchpoints with owners. On the market side, valuation pressure continues to build. The latest IBBA Market Pulse survey shows: - Businesses in the $2–5mm TEV range are now averaging 3.9x EBITDA, up from 3.5x earlier this year. - Businesses in the $5–50mm TEV range have risen from 4.5x to 5.5x. With interest rates still elevated, this combination makes debt service more challenging without additional equity, which puts pressure on returns. The key takeaway: good businesses are getting more competitive and expensive, and maintaining patience and discipline is critical. Looking Ahead September will be about building on this momentum—monitoring improvements in email engagement, launching the direct mail cadence, and continuing to grow network-driven deal flow—all while staying ready to act quickly when the right opportunity surfaces. How you can help (my only ask) If you see a business in WA or FL that provides essential goods/services and generates $750k-3mm in EBITDA or pre-tax profit, I’d greatly appreciate an introduction. Always happy to swap notes or be helpful however I can—feel free to reach out! Alex