What I Hear From Private Equities Who Want to Find The Right Acquisition
“We’re looking for a manufacturing company with a minimum of $1 million in EBITDA and $10 million in sales. We want a company that is growing and would like one with its own product line.”
It was like a broken record. Each email was the same thing. So finally I did it. I told one of them what I really thought:
“Yeah, everybody and their mother wants that, their dog too. What makes you so special and why should I spend my precious time to find the right acquisition for you?”
His response was swift and candid. Apparently, no one had ever answered him with such a smart mouth and he thought it was refreshing. Even better was the fact that he told me precisely why they were different than some of their competitors and he got much more detailed about the type of company they were looking for. Why not just start out with that information in the first place? The more information provided, the easier it is to locate the RIGHT match.
Start With the Basics
Consider providing some of the following basics when contacting Business Brokers and Intermediaries in your quest to find the right acquisition:
- If you’re looking for an add-on to a company you already own, provide a link to that website and explain if you’re seeking complementary businesses or competitors. Is it geographic expansion you seek? Provide information upfront.
- Are you a family office that runs the companies you buy rather than flip them? That’s extremely attractive to many retiring manufacturers who are concerned about the continuity of what they built and their staff. Will selling to your company mean that the employees will be part of a much larger organization and, therefore, have increased opportunities for upward mobility? That will be your trump card with many Sellers.
- Do you have your financing in place so that my client doesn’t have to wait for two months for your bank to approve the transaction? Now you’re looking even better!
- Is this the first purchase in a sector in which you will make multiple purchases and there’s an opportunity for a longer-term relationship as a buyer’s representative? Gee, I may put you on the TOP of my call list when I have a new listing.
Conclusion
All these things can make you stand out in the sea of endless emails and phone calls from PE firms that are all looking for the same thing when trying to find the right acquisition. Communicating what makes you different and the real specifics of what you are looking for will get you where you want to go faster. Set up an email template to make the process easier for yourself, but PROVIDE THE INFORMATION! Brokers everywhere will thank you and spend more of their time helping you reach your goal.
Contact Us with questions or to provide more detail about your criteria when trying to find the right acquisition. Also, fill out our Buyer Registration so we can alert you when something comes in.