What Are Your Odds Of Finding A Company?

investor profile

March 12, 2022

by an investor from University of Texas at Austin in Austin, TX, USA

When we started our search, my biggest question was how many of these companies are out there and what are my odds of actually finding one and pulling this off. Here's my best guess of your odds of finding a company to buy and the three factors that determine whether a search succeeds or fails.

What Are Your Odds Of Finding A Company?

Plenty of experienced brokers and searchers on this platform. Would love to hear what you think of these numbers.

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commentor profile
Reply by an intermediary
from New York University in Menlo Park, CA, USA
Johannes-
Happy to share my perspective as a broker to see if it corresponds with the response you receive from the buy-side.

I typically receive a few hundred inquires per LOI for my listings.Lots of tire kickers out there.

From PE firms buyers, they typically respond looking at###-###-#### deals per year and closing 1-2.I’d suspect their chances of identifying and closing a deal to be slightly better than the average searchfunder as their targets are more narrowly defined and they typically bring more deal experience to the search process.
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Reply by a searcher
from Portland State University in Portland, OR, USA
I think it is a question everyone considers. I like the article you shared and the approach you are taking. Like anything else, breaking it down into manageable processes and discipline will win the day.
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