🎯 Deal Sourcing Tips for Searchers

Finding the right business is harder than ever. PE firms are moving downstream. HoldCos with patient capital are crowding inboxes. And AI-armed searchers are flooding the same owners.

As one veteran dealmaker told our community recently: "Personalization beats persistence. A single thoughtful email outperforms a hundred generic ones."

The sourcing playbook that worked five years ago—mass outreach, broad theses, public listings—no longer cuts through.

But here's what most searchers miss: the best opportunities still come from doing what everyone else won't.

Eighteen months in, you'll be tempted to chase whatever crosses your desk. That med spa deal looks pretty good when your pipeline is empty.

Don't.

Your investors backed you because you know something deeply, not because you can learn anything quickly. Sector-focused funds outperform generalists for a reason—expertise compounds. You'll spot opportunities faster, answer seller questions with authority, and identify risks that generalists miss.

Yes, this narrows your universe. But you're not trying to see every deal. You're trying to win the right one.

No single channel fills your pipeline. Successful searchers layer multiple approaches:

Build a list of 500-1,000 targets in your thesis. Use Secretary of State databases, industry associations, and data tools to identify owners. Send targeted emails. Make calls. Follow up 4-6 times over several months.

Depth matters more than volume. The best outreach isn't automated—it's specific, researched, and shows you understand the owner's world.

Most searchers quit after two attempts. The money is in the follow-up.

Pipeline reality: Most searchers see around ten serious management calls yield four IOIs and one signed LOI—and even then, half fall apart before close.

Skip large generalists. It’ll be hard compete with PE firms on price in formal auctions.

Instead, find regional or sector specialized brokers in your buy box. Check their tombstones. If large strategics or mega-funds are buying, move on. If you see smaller sponsors and search funds, lean in.

Build real relationships. Make it easy for them to think of you. Be responsive, provide feedback, and refer deals outside your criteria. The best brokers remember buyers who are professional and easy to work with.

The best buyers don't just offer price—they offer structure. When sellers compare buyers, structure is often the tiebreaker.

A typical self-funded deal today might be:

But here's what most searchers miss: each part of the deal structure is a lever on purchase price.

Smart searchers customize structure based on what the seller actually wants. Is the owner 68 and ready to retire? Maximize cash at close. Is it a 45-year-old founder who wants to stay involved? Lean into rollover and a longer transition. Selling to fund another venture? Consider a shorter earnout period.

The same $5M deal can look completely different structurally—and the flexible buyer usually wins, even at a lower headline number.

You're competing against PE firms with 4-5 person deal teams. Technology levels the playing field.

For aggregated listings: EBIT Pro pulls opportunities from 100+ sources across the internet into one dashboard, so you're not manually checking dozens of sites every day.

For targeted proprietary sourcing (phone and email): CAPTARGET combines data, AI, and systematic outreach to help searchers build deal flow. They specialize in helping buyers like you identify and reach off-market targets at scale. (Mention EBIT for $200 off)

Tools like these help you see more opportunities faster. Your expertise helps you pick the right ones.

Most underutilized channel. Attend 2-3 niche conferences per year. Not broad industry events—specific subsector gatherings where owners actually show up.

Why conferences work: You'll gain market intelligence, meet potential operators, connect with industry lenders, and build relationships with sellers who aren't ready now but might be in 12-24 months. Conference connections convert at 3-4x the rate of cold outreach because you've already established trust in person.

When you find something promising, real human connection matters more than efficiency.

Here's what most searchers miss: everyone is drowning in email. Business owners receive dozens of "I want to buy your business" messages every week. Most get deleted unread.

AI has made inbox volume explode, but it hasn't replaced real conversation.

Almost nobody calls anymore.

Cold calling feels outdated. It's uncomfortable. You'll get rejected. And that's exactly why it works.

When you call, you immediately differentiate yourself from the hundred other buyers hiding behind email. You become a real person. You can read their tone, adapt in real-time, and build rapport in ways email never allows.

Most owners appreciate the directness. After years of impersonal outreach, a thoughtful phone call stands out.

Simple framework:

Searchers who combine phone outreach with email get significantly more meetings than email-only approaches.

When interest is mutual, fly out before you submit an LOI, not after.

Two days with an owner tells you more than twenty Zoom calls. You'll understand what they actually want (often not just price). You'll spot cultural fit issues. You'll see how they treat employees, handle stress, make decisions.

In-person meetings also help you avoid broken deals. If an owner isn't serious or the business has red flags, you'll know before spending $50K on diligence.

Hot sectors attract capital and drive up entry multiples. Med spas, HVAC, car washes—everyone wants in today.

But hot today doesn't mean hot at exit. Remember vet clinics in 2021? Or dental practices that PE has cooled on after years of roll-ups?

Find niches where you can enter at reasonable valuations with clear exit paths. That usually means being early to a trend, not riding it at the peak.

Americans still get their teeth cleaned. Industrial businesses still need metal fabrication. B2B companies still require managed IT services. Strong fundamentals matter more than hype.

Always ask: who buys this business in five years? If the answer isn't clear, keep looking.

For traditional searchers: Before you sign an LOI, call your top 2-3 investors. Get their preliminary thoughts. What excites them? What concerns them? What boxes need checking during diligence?

Investors involved early move faster when you need capital. And a "no" before LOI saves you months and money.

For self-funded searchers: The same principle applies to your deal team. Loop in your SBA lender early to understand deal structure preferences. Get your attorney's read on any unusual terms. Talk to your QoE provider about red flags they commonly see in your sector.

The best investors and advisors don't just sign checks or stamp approvals—they ask hard questions, poke holes, and help you gain conviction (or walk away from a bad deal).

Let's be direct about strategies that waste time:

Unclear motivation: If your only story is "it's profitable," sellers will smell it instantly. They want a buyer with conviction, not curiosity.

Generic email blasts: "I want to buy a business with $1-3M EBITDA" gets deleted. Brokers receive hundreds weekly.

Business listing sites for traditional searchers: Most BizBuySell companies get a ton of inbound and are likely too small or lack infrastructure for larger deals.

Competing in formal auctions: Unless you bring unique value beyond price, you lose to PE firms with bigger checkbooks.

Deal sourcing in 2025 requires systems, not luck. Stay specialized. Pick up the phone. Build relationships with boutique brokers. Use technology to amplify your efforts. Get on planes early. And always keep exit potential in mind.

The market is competitive, but quality businesses are still out there. You just need the right approach to find them.

Most searchers give up too early or spread themselves too thin. Off-market sourcing takes time—usually a year or more of consistent, relationship-based effort. The best deals don't show up fast; they show up after everyone else has quit.

The ones who show up consistently for 18-24 months with a focused strategy are the ones who close great deals.

Your goal isn't to see every opportunity. It's to see the right ones and move decisively when you do.

If you're serious about buying a business in 2025, make sourcing your superpower. The next great deal won't find you—you'll find it.

The next 12 months will separate the hobbyists from the professionals.

Want to discuss your sourcing strategy? Share your challenges in the EBIT community—we're all learning together.

Disclaimer: This guide is for educational purposes only and does not constitute legal, financial, tax, or investment advice. Business acquisitions involve significant risks, and outcomes can vary widely based on individual circumstances. Always consult with qualified professionals including attorneys, CPAs, and financial advisors before making acquisition decisions. The EBIT Community does not guarantee the accuracy of information provided or the success of any acquisition strategy. Past performance and examples do not guarantee future results.