Best Sourcing Strategies: Findings from 314 Searchers

searcher profile

January 31, 2026

by a searcher from Brigham Young University in Palo Alto, CA, USA

Here's how SMB deals get sourced, from an analysis of 314 successful first-time searchers. This visual is just a summary. The most interesting part is the next layer, containing best practices for each of these categories & subcategories. I am writing a brief report summarizing these - I did this just for my own learning, but I think this community will find it beneficial.
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commentor profile
Reply by an investor
from Stanford University in New York, NY, USA
It's a great visual and reinforces how multi-channel the deal sourcing motion is. There is no one path unless you are operating at tremendous long-term scale and can fund a direct to owner approach with all the lead times and broken processes inherent in that approach. I know that the search / search fund world has its roots in proprietary outreach to business owners directly, and I continue to think that is a tough path to have be your only high level approach. The volumes of outbound have gotten so high and the close rates are so so low, but hey you only need one. I look forward to following this thread.
commentor profile
Reply by an investor
from Wesleyan University in Dedham, MA, USA
Interesting data. I am not sure I would have broken out this way as I see networking and outreach as overlapping and at the core of a good search. But nevertheless this is useful. It would be cool if there was any way to try to sort through any correlation to price/valuation and which were competitive situations and which not.
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