Howdy,

We talk to new searchers every day, as well as those who, after several months, are struggling to gain traction in their deal flow.

So, why is it that many of you—specifically in the context of off-market deal sourcing—are hardly getting the opportunity to speak with business owners about a potential sale, let alone securing a first meeting?

From my perspective, there are three main reasons:

  1. Lack of Focus

When asked what exactly they’re looking for, many searchers (though not all—I’m not a fan of generalizations ;-) ) respond with something like:
"B2B services, industry-agnostic, with recurring revenues…"

But this signals that you don’t have a strong motivation to enter a specific industry. As a result, your research into the target market is often superficial at best.

Tip: Choose an industry! Conduct in-depth market analysis! Know the key players! Then, reach out to business owners by expressing your genuine interest in their specific industry. Be focused!

  1. No Added Value

Be prepared to answer the question: How do you plan to grow the business?
What can you do better or differently than the current owner?

Do you have experience in their industry? Great! That makes things easier.
No experience? Then focus on the skills you bring to the table—whether that’s sales, tech enablement, or other value drivers.

  1. Growth Strategy Doesn’t Align with Your Offer

Many of you state on your website that you’re looking to acquire only one business. I think that’s the wrong signal. Why?

Because it makes things harder when offering rollover equity to the seller. Why would an owner want to retain shares if your strategy is purely organic growth?

Instead, keep the door open for add-on acquisitions. Having an M&A component in your strategy signals faster and potentially more secure future growth.

Just a few thoughts from daily practice. Hopefully, this encourages some of you to refine your strategy—and maybe there's a key takeaway here that helps you finally step through the door of your next business opportunity.

Greetings from Austin,
Andre