If you’re searching to buy a business, you need to be focused. In the SMB world, track bizbuysell and broker emails. But, building a proprietary deal funnel should be #1 on your list. Here's how to do it:
Find 1-3 industries & business models you’re excited about. 1) You’re excited to spend the next 5-10 years in the space 2) The fundamentals get you excited to invest in the space. This is a crucial step. (DM if you need some guidance here)
Start becoming an expert with 3 goals: 1) Become better at diligence so you buy the right business 2) Build a post-close value creation plan 3) Build rapport with potential sellers. Business owners want to sell to someone who isn’t a tourist in the space
Build a proprietary list of existing businesses that meet your location criteria 1) You can build this yourself or pay $800 to a outsourced research firm to get this done (DM if you need a rec.) 2) Be sure to include employee count, location, owner, contact information, services
Triage the list and start building relationships: 1) High-Priority Deals: Fully customized emails, calls and office visits. +1 for warm intros. 2) Lower-Priority Deals: Put them in an email sequence with the first email 100% customized. No generic emails.
Be methodical about tracking your discussions and next steps. It doesn't matter if you use a formal CRM, google sheets, or airtable. Follow-up when you say you’re going to and check-in with people frequently.
Once you get a deal in the door, that's when the real work begins. Do your research and rely on smart partners. Legal - @KHendersonCo, @SMB_Attorney QOE - @ElliottEHolland Lenders - @LisaGForrest Accountants - @patrickdichter, @CTW_SMB
If you want a second opinion on a deal you’re pursuing, I do 100% free deal reviews. I spend 45 minutes reviewing and sharing my thoughts around aspects of the deal I like and things I’d focus on in diligence. You can submit your deal here:
andyvandenberg.com/dealreview
Follow me @andyhvandenberg for more like this. If you have questions on anything, I respond to all DMs and emails. Like/Retweet the first tweet below to help more people see this:
