Best places to search for potential targets

August 26, 2022

by a searcher from Harvard University - Harvard Business School in New York, NY, USA

I would very much like to know where searchers have found their deals (i.e. thru brokers, word of mouth, cold calling, etc.). Is there any research on that? Can anyone recommend brokers in the financial services space that are excellent?

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Reply by a searcher
from Ivey Business School at Western University in Toronto, ON, Canada

I'd suggest networking with individuals who have recently closed an acquisition within your targeted geography, and gather enough data points to be statistically significant. The ETA environment is constantly evolving, especially competitively, so strategies and sources of deals that worked say, 5+ years ago, MAY not be as relevant today. Thus, even if there was an aggregated source of data, you'd need to be mindful of source age and geography given they have a large influence.

With that said, I recall a podcast recently (Acquiring Minds?) discussed a study which identified only a small portion of closed deals being proprietarily sourced. Perhaps worth dissecting in addition to networking.

Reply by a searcher
from Anderson University in Canton, OH, USA

I completed a geographically focused search in April. I was introduced to the deal that eventually closed by a banker who happened to know the seller and with whom I had networked as part of my search process. I looked at several deals through brokers as well, and I felt. a few would have been good businesses for fair prices. In the end, the privately sourced deal turned up the best company, so I would stress the value of personal networking.

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