Ask Me Anything Summary

In a world where everyone with an email account can blast acquisition offers, how do serious searchers cut through the noise and find genuine opportunities? This question was at the heart of our recent AMA with Andre Achtermeier, a seasoned M&A professional who's mastered the delicate art of off-market deal sourcing.

Andre brings a unique dual perspective to the acquisition world. Originally from Germany, he successfully founded and sold two software businesses in 2008 before establishing eightM, his Austin, Texas-based M&A buy-side advisory firm. With experience on both sides of the deal table and across international markets, Andre's insights reflect a depth of practical wisdom rarely found in theoretical discussions about business acquisition.

The Shift from Volume to Value in Deal Sourcing

One of the most compelling insights from our session was Andre's emphatic stance on the evolution of effective outreach strategies. The days of the "spray and pray" approach are rapidly fading:

"We did this at the beginning on our journey with searchers and played the numbers game... that changed... it's more effective to invest in upfront research and reach out to targets where you have enough background information."

Andre explained that while typical mass email campaigns might see:

• 60% open rate

• 40% click rate

• 15-20% response rate (including negative responses)

Some less targeted projects see response rates plummet to just 2%. The math becomes clear: quality dramatically outperforms quantity in today's competitive landscape.

What Personalization Really Looks Like

Andre didn't just preach personalization—he showed exactly what it means in practice by sharing a real example from his recent outreach:

Dear XXXX,

I am reaching out to you in your capacity as the owner of XXX regarding a potential business opportunity of mutual interest.

We are advising XXXX Capital (in cc) actively seeking platform investment opportunities in the manufacturing of high-pressure pumps across the United States.

Please find the teaser attached.

Our client has engaged us to identify and approach businesses that demonstrate strong market positioning, growth potential, and high-quality service offerings.
XXX Capital is leaded by engineers with extensive experience in manufacturing and materials technology. We are highly impressed by XXX's capacity and part quality.

We believe XXX could be an attractive candidate for a potential partnership or investment, and we would appreciate the opportunity to discuss this matter with you in more detail.

Notice how the message demonstrates specific industry knowledge, explains why the target company is of particular interest, and avoids generic acquisition language that immediately triggers seller skepticism.

The Real Numbers Behind Deal Sourcing

For searchers building their acquisition strategy, Andre shared these critical benchmarks: "If we entertain 10 Management Calls (with target and client) we will send out 4 IOI and that results in 1 LOI"

This roughly translates to:

• 10 management calls → 4 Indications of Interest → 1 Letter of Intent

• Then, that single LOI only has about a 50% chance of closing in the US

These numbers help set realistic expectations about the pipeline volume needed to close a single deal.

Typical Deal Structures in Today's Market

When asked about current deal structures, Andre revealed this typical pattern for their transactions with private investors:

• 70% cash

• 10% seller's note

• 10% rollover equity

• 10% earnout (or 5% more on the seller's note and rollover)

This structure balances immediate seller liquidity with incentives for smooth transition and continued performance.

The Six Deal-Killing Mistakes Searchers Make

Andre identified these critical pitfalls that derail otherwise promising searchers:

1. Unrealistic EBITDA targets - Chasing businesses with $2M+ EBITDA puts searchers in direct competition with private equity firms wielding much larger war chests

2. Industry knowledge gaps - Failing to understand the competitive landscape, sales cycles, and key challenges in target industries

3. Weak motivation narratives - Being unable to convincingly answer why they want to enter a specific industry beyond financial returns

4. Financial tunnel vision - Leading with financial discussions rather than demonstrating curiosity about the business model in early seller meetings

5. Geographic inflexibility - Limiting opportunities by refusing to consider businesses outside a narrow geographic area

6. Experience mismatches - Targeting industries where the searcher lacks relevant expertise or transferable skills

How Technology Is Reshaping Seller Expectations

Andre offered a compelling explanation for why many deals now face valuation challenges: "The AI tools and lead generation tools are now easy to use and many of y'all are using these technology... with mostly the same data sources... The owner of the Plumbing business is receiving 5 emails a day from searchers who want to buy him out. If you receive 5 requests a day... you think your business is 10m worth."

This insight reveals how technology democratization has inadvertently inflated seller expectations, making relationship-based approaches increasingly valuable despite their longer timeline.

The Marathon Mindset: Off-Market Search Philosophy

Throughout our conversation, Andre repeatedly emphasized that successful off-market searching requires:

• Focus - Maintaining clear criteria rather than chasing every opportunity

• Target knowledge - Deeply understanding the businesses you approach

• Personalized communication - Crafting messages that demonstrate genuine interest

• Industry expertise - Building and showcasing relevant knowledge

• Multi-channel outreach - Leveraging associations, networks, and trade shows

• Patience - Recognizing that the process often takes 12+ months

eightM's Comprehensive Approach

For searchers considering professional support, Andre outlined eightM's structured process:

1. Signing an agreement with searchers

2. Conducting a kickoff workshop to develop a compelling buyer story

3. Screening markets, industries, and other sources for potential targets

4. Analyzing targets before making contact

5. Approaching targets with personalized outreach

6. Setting up discovery calls with searchers optionally joining

7. Coordinating and moderating management calls

8. Managing the entire process (NDA, IOI, LOI, Data Room) through to closing

9. Then we have a lot of fun at the closing dinner

The Ideal eightM Client Profile

When evaluating potential searcher partnerships, eightM prioritizes:

1. Expertise in the target industry, or

2. A skill set that clearly adds value to acquisition targets

3. Geographic flexibility (not limited to one location)

4. Focused search criteria with logical connections to the searcher's background

Key Takeaways

• Personalization trumps volume in today's saturated outreach environment

• Be realistic about conversion rates - expect a 10:4:1 ratio of calls to IOIs to LOIs

• Structure deals with balance - 70% cash / 30% other considerations is standard

• Avoid the six common searcher pitfalls, especially competing with PE for larger deals

• Recognize how technology has changed the game and adjust strategies accordingly

• Adopt a marathon mindset with focus, knowledge, and patience as your training plan

Conclusion

Andre's insights reflect a seasoned perspective on the evolving landscape of deal sourcing. His emphasis on personalization, industry knowledge, and relationship building over volume-based approaches offers valuable guidance for searchers looking to stand out in an increasingly competitive acquisition market.

The EBIT Community thanks Andre for sharing his expertise. Members are welcome to connect with him directly through LinkedIn or his website for further discussion.

Join Our Community

Our thriving community of searchers gained invaluable insights during this week's AMA with Andre Achtermeier of Eight M. Members engaged in a dynamic discussion about personalization strategies that outperform mass outreach, realistic deal conversion metrics, and common acquisition pitfalls. These practical, candid conversations exemplify what makes our community special - experienced operators freely sharing hard-won knowledge with fellow searchers at all stages. Join us to access more valuable discussions and connect with others on the same journey.