What to tackle first in the search process?

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September 10, 2025

by a searcher from Iowa State University - College of Business in Huntington Beach, CA, USA

As someone who has been running businesses as a W2 employee for years, I am looking for advice on where to focus my time initially in the search process and which task to get in line before approaching potential sellers. Do you suggest reaching out to M&A groups or finding a local think tank to partner with in the search?
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Reply by a searcher
from University of California, Los Angeles in New York, NY, USA
A lot of good advice already. Below was my rough work plan when I got started. The Foundation - Define deal criteria / buy box - Finalize SPV name, website domain, and email (e.g., redacted ((optional, but I think it builds credibility) - Register LLC (optional, but I think it builds credibility) - Setup CRM (e.g., Hubspot free version) - Finalize website (optional, but I think it builds credibility) - Update LinkedIn (optional, but I think it builds credibility) - Attend a few local ETA events - Secure letters of support from equity backers and loan providers (if possible) - Read HBR Guide to Buying a Small Business and Buy Then Build Reviewing Deals After the foundation is set, your time will likely be focused on reviewing deals. This work includes reviewing business listings on the major platforms, requesting CIMs, reviewing the data relative to your buy box, conducting due diligence, and moving opportunities through your buy funnel (e.g., Requested CIM > Broker Discussions > IOI > Seller Discussions > LOI). Ignore listed sale prices and expect to determine your own valuations which will vary. 3-4.5x earnings after paying yourself a salary is a good range keep in mind -- higher valuations should be supported by a business with stable financials, recurring revenue, sustainable competitive moat, recession resistant, etc.) I also agree with the comment above that the highest ROI on your time comes from reviewing actual deals. You should just do a bit of prep work first to ensure you know what you're looking for.
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Reply by a searcher
from University of Edinburgh in Toronto, ON, Canada
I'm still actively in the early process myself, but what I've found really useful is having informal conversations with business owners in my target sectors before jumping into any formal outreach. These chats have honestly been game-changers - they've helped me build confidence, sharpen my investment thesis, and given me real insights into what actually drives owners to consider selling. On the infrastructure side, while I'm setting up the usual stuff (CRM, tracking systems etc.), I've been prioritizing local industry groups and business associations over M&A brokers early on, since I've learned that brokers tend to shop their best deals to the established PE players first anyway.
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