How to Source Proprietary Deals as a Searcher (Without a Huge Network)

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.

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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.

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Why Proprietary Deals Matter

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Proprietary deals aren’t just about avoiding competition. They give you:

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• 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.

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If you’re serious about ETA, learning how to source off-market is the difference between success and spinning your wheels.

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Step 1: Build a Clear, Narrow Acquisition Thesis

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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:

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• 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?

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This focus makes your outreach targeted and credible.

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Step 2: Create a High-Trust Outreach Package

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Before you send a single email or make a call, prepare:

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• 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.

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You don’t need a huge team—you need a professional, repeatable system.

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Step 3: Leverage Public Data and Niche Lists

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Proprietary deals start with data, not luck.
Here’s how to find your target list:

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• 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.

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Aim to build a list of 500–1,000 potential targets in your thesis.

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Step 4: Cold Outreach the Right Way

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Most searchers get ghosted because their emails sound generic and self-serving.

Here’s a framework:

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1. Start with curiosity: Acknowledge their success—“I came across your business in [XYZ source] and was impressed by [specific detail].”
2. 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?”
3. Keep it short and personal: Skip the MBA speak. Be real.

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Pro tip: Follow up 4–6 times. Sellers are busy—most deals happen after multiple touches.

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Step 5: Build Relationships, Not Just Pipelines

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This is where most searchers fail. They collect names but don’t nurture relationships.

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Your goal is to become the person they think of when they’re ready to sell. That means:

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• Regular check-ins (quarterly is fine).
• Sharing insights or value-adds (industry news, market trends).
• Respecting their timeline.

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The best proprietary deals come from patience and persistence.

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Step 6: Create Inbound Opportunities

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You don’t have to rely on pure outbound.
Build inbound deal flow by:

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• 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.

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Even a small, consistent presence compounds over time.

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Step 7: Track, Refine, Repeat

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Deal sourcing is a volume game—but it’s also a learning game.

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Track:

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• Number of emails sent
• Open and response rates
• Conversations booked
• Quality of deals uncovered

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Refine your outreach as you go:

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• Which subject lines get opens?
• Which industries respond?
• Which messages resonate?

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Build a sourcing system, not just a list.

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Final Thoughts: You Don’t Need a Huge Network — You Need a Hustle Mindset

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The best searchers aren’t the most connected.
They’re the most consistent.

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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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