Unsolicited Interest Approach

by a searcher from Harvard University - Harvard Business School

3 years ago

All - I'm interested to hear how you have approached potential targets that have not (yet) shown interest in selling.  What approaches have been successful to facilitate a productive initial conversation?  What approaches should I stay away from?  

Thanks, all!!  I appreciate the power of collective experience in preventing additional scar-tissue!

Best,
Brad

6 likes
195 views
3 comments

intermediary from Indiana University at Bloomington

I agree with Tom as well as you have to get pass the gatekeeper and when you do, have a compelling case for them to listen. 80% of the businesses that sell are not listed, usually because they do not want to pay a high sell side fee and most importantly, they are scared to death of confidentiality leaks. As well as many have been approached by individuals who in the past have been tire kickers, looking for the perfect business at a discounted price. So they have wasted time and generally are very leery of an individual approaching them. On smaller deals, the #1 driving force is selling to someone that they like and that they feel will take care of their "baby". SearchFunders often have PE type names, XXX Capital Partners and often this is an immediate turnoff as they believe, maybe incorrectly, that you are a PE firm and not looking to buy and hold.

3 years ago | like reply | 2 likes

searcher from Harvard University - Harvard Business School

Tom, thank you for thoughtful response. Much appreciated.

3 years ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Examples of self-funded searcher websites

Investor seeking Self-Funded Search Deals

What are market terms for Seller Notes?

2 Best Ways To Find Motivated Sellers, Off-Market Deals

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.