Sourcing Off Market distressed leads
September 17, 2024
by a searcher in Summerville, SC, USA
Hey All,
Ive found a few ways to create lead lists.
How do you build or filter your lists to Identify the most motivated sellers?
September 17, 2024
by a searcher in Summerville, SC, USA
Hey All,
Ive found a few ways to create lead lists.
How do you build or filter your lists to Identify the most motivated sellers?
from University of Southern California in Charlotte, NC, USA
When you have a good off market deal flow it's important to have screening process. During the initial sellers meeting most of my questions are designed to help me understand the Seller's MUD score --Motivation/Urgency/Desperation. I look for good businesses with solid cashflow that can support the financing with high MUD scores. I've seen many businesses with high MUD scores that are NOT turn around opportunities. Divorce, Death, Serious Illness, Retirement /Burnout all score high MUD scores. The higher the MUD score the more likely the deal will get done at a reasonable price.
Once I find Highly Motivated buyers. Then I transition my discovery into the Transference of Value scores. Basically how well will the company transfer ownership. I look at 4 main areas - Customer, Employee, Structural and Social. This will tell me where the companies gaps are and how to reflect that in the pricing of the business. A business that is heavily owner ran will be of lessor value than a skill self running team. I will pay higher multiples for a higher scoring business.
If you want to discuss this topic a little more, send me a DM.
from Monash University in 73 Esslingen, Germany