Typical Deal Funnel Metrics

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June 14, 2023

by a searcher from Babson College - F.W. Olin Graduate School in Boston, MA, USA

Does anyone have typical deal funnel metrics they're willing to share? Specifically looking to get a sense of how many deals need to be sourced/reviewed and what % get to each phase to figure out appropriate benchmarks throughout the process for either a regional or national search. Example, needing to look at 1500 deals where 25% move to a deeper analysis, 25% of those move on to preliminary due diligence, 15% of those move on to LOI, through to close. Thanks.

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Reply by a searcher
from University of California, Berkeley in 美国加利福尼亚圣克拉拉
Hi Isabelle, the funnel from book Search Funds & Entrepreneurial Acquisitions (https://www.amazon.com/Search-Funds-Entrepreneurial-Acquisitions-Business-ebook/dp/B09PGTSMMY) provids a reference. It's >3000 business contacts, 256 answers, 124 positive follow-ups, 25 meeting, 16 price conversations, 5 LOI, 1 deal!
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Reply by a searcher
in Prague, Czechia
Hi Isabelle, obviously it varies based on the market you're searching on as well as the approach you're applying. My metrics from Central Europe are 65%+ response rate, with 16% yield (sellers who are interested to meet personally), 2% NBOs (depends on how picky you are), 0,3% DD and hopefully the current one I'm working on finally acquiring (it would be approx. 0,1%).
Hopefully, it helps.
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