Active deal sourcing vs. passive/digital sourcing - what has worked for you?
I’m looking to acquire an industrial/manufacturing business in NC/SC/VA/GA area.
I’ve been searching for about 18 months, primarily through BizBuySell and Axial. I’ve submitted a couple of LOIs, but ultimately fell apart during due diligence.
I’m now considering two approaches to expand my sourcing:
1. Active proprietary sourcing: Work with a buy-side broker/sourcing firm that directly reaches out to business owners. Cost seems to be a min $4K/month plus a success/finder’s fee.
2. Passive/digital sourcing: Work with a digital marketing firm to run targeted ads/campaigns to business owners. Similar monthly cost ($2K–$4K), but typically no finder’s fee. My concern is that it may take longer and generate less-targeted opportunities.
For those who have tried either approach, what has actually worked? Did proprietary outreach generate enough quality conversations to justify the finder’s fee? Has anyone successfully sourced an acquisition through paid digital campaigns?
Would appreciate recommendations on firms/vendors you’ve personally used as well.
I’ve been searching for about 18 months, primarily through BizBuySell and Axial. I’ve submitted a couple of LOIs, but ultimately fell apart during due diligence.
I’m now considering two approaches to expand my sourcing:
1. Active proprietary sourcing: Work with a buy-side broker/sourcing firm that directly reaches out to business owners. Cost seems to be a min $4K/month plus a success/finder’s fee.
2. Passive/digital sourcing: Work with a digital marketing firm to run targeted ads/campaigns to business owners. Similar monthly cost ($2K–$4K), but typically no finder’s fee. My concern is that it may take longer and generate less-targeted opportunities.
For those who have tried either approach, what has actually worked? Did proprietary outreach generate enough quality conversations to justify the finder’s fee? Has anyone successfully sourced an acquisition through paid digital campaigns?
Would appreciate recommendations on firms/vendors you’ve personally used as well.