Anyone had luck purchasing a business from direct outreach?

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May 15, 2024

by a searcher from University of Southern California in Los Angeles, CA, USA

I'm curious what your experience has been with direct outreach. I've been looking for a CA business in the $1M-$3M range on all the popular broker sites but I haven't seen more than a handful of worthy businesses during this time so I am looking for other avenues.

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Reply by a searcher
from University of California, Berkeley in Vienna, VA 22180, USA
It has worked well for me. I obtained a list from an association which consisted of more than 5,000 contacts. I had VAs call every one of them while another team gathered LinkedIn profiles and sent connection requests. I'm in negotiation with 2 and another 3 more companies I am evaluating. It all depends on the industry but if the business requires a specific license it's easy to get the details and VAs are cheap at $5 - $7 per hour. Using this method has generated more than 100 leads and without a broker involved allows me to be more creative in the deal structure. I intended to acquire 100% of one company but instead I will likely be acquiring a majority interest in 3 companies over the course of the next 2 years. This was not my plan but evolved out of discussions with potential sellers. The lesson here is not to stop if they say I don't want to exit now.
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Reply by a searcher
from Harvard University in Dallas, TX, USA
Proprietary is tough but at least you can control what kind of business you are interacting with. Realize that any deal you see that is represented by an intermediary and available to "the masses" has already been turned down by multiple layers of buyers approached through more narrowly focused marketing.
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