Most searchers fail before they even get a shot at a business. Why?
They rely on the same brokered listings, the same websites, the same stale deals—and end up overpaying in competitive processes.
The truth is, the best search fund acquisitions are rarely found in public listings. They’re sourced proactively, directly from business owners who aren’t actively trying to sell.
If you’re a searcher wondering “How do I find proprietary deals if I don’t have a huge network?” — this is your playbook.
Why Proprietary Deals Matter
Proprietary deals aren’t just about avoiding competition. They give you:
- Better pricing leverage — no bidding wars.
- More flexible terms — especially for seller notes, earn-outs, and transition plans.
- Stronger seller relationships — critical for closing the deal and running the business.
If you’re serious about ETA, learning how to source off-market is the difference between success and spinning your wheels.
Step 1: Build a Clear, Narrow Acquisition Thesis
No one wants to take a cold call from a random searcher who doesn’t know what they’re looking for.
Your acquisition criteria need to be:
- Industry-specific: “Commercial HVAC contractors in the Midwest” beats “any business with $1M EBITDA.”
- Size-defined: Revenue, EBITDA, employees, location—be precise.
- Owner-aligned: Family-owned? Founder-led? Multi-location operators?
This focus makes your outreach targeted and credible.
Step 2: Create a High-Trust Outreach Package
Before you send a single email or make a call, prepare:
- A concise searcher profile: Who you are, what you’re looking for, why they should trust you.
- A simple one-pager or personal website: Showcase your story, industry focus, and vision.
- A basic NDA template and process for follow-ups: Ready to move fast.
You don’t need a huge team—you need a professional, repeatable system.
Step 3: Leverage Public Data and Niche Lists
Proprietary deals start with data, not luck.
Here’s how to find your target list:
- State business filings: Secretary of State databases show active businesses in your target industries.
- Industry associations: Trade groups often publish directories of members.
- Specialized data tools: Use platforms like Grata, SourceScrub, or Data Axle for lists of privately held companies.
- Local research: Chamber of Commerce sites, SBA 504 loan records, and local business journals can reveal owners under the radar.
Aim to build a list of 500–1,000 potential targets in your thesis.
Step 4: Cold Outreach the Right Way
Most searchers get ghosted because their emails sound generic and self-serving.
Here’s a framework:
- Start with curiosity: Acknowledge their success—“I came across your business in [XYZ source] and was impressed by [specific detail].”
- Frame the conversation as a relationship, not a transaction: “I’m a small operator looking to acquire and steward a business like yours. Would you be open to a conversation?”
- Keep it short and personal: Skip the MBA speak. Be real.
Pro tip: Follow up 4–6 times. Sellers are busy—most deals happen after multiple touches.
Step 5: Build Relationships, Not Just Pipelines
This is where most searchers fail. They collect names but don’t nurture relationships.
Your goal is to become the person they think of when they’re ready to sell. That means:
- Regular check-ins (quarterly is fine).
- Sharing insights or value-adds (industry news, market trends).
- Respecting their timeline.
The best proprietary deals come from patience and persistence.
Step 6: Create Inbound Opportunities
You don’t have to rely on pure outbound.
Build inbound deal flow by:
- Posting on LinkedIn about your search and industry focus.
- Attending industry events and trade shows.
- Publishing articles or podcasts that showcase your expertise.
- Partnering with CPAs, attorneys, and wealth managers who have access to owners.
Even a small, consistent presence compounds over time.
Step 7: Track, Refine, Repeat
Deal sourcing is a volume game—but it’s also a learning game.
Track:
- Number of emails sent
- Open and response rates
- Conversations booked
- Quality of deals uncovered
Refine your outreach as you go:
- Which subject lines get opens?
- Which industries respond?
- Which messages resonate?
Build a sourcing system, not just a list.
Final Thoughts: You Don’t Need a Huge Network — You Need a Hustle Mindset
The best searchers aren’t the most connected.
They’re the most consistent.
If you’re willing to pick up the phone, send the emails, and show up when others quit, you’ll find proprietary deals—even without a big Rolodex or a Stanford MBA.
The key is to build your system, show up every day, and stay in the game long enough for opportunities to find you.
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