This is sales. Get ready to send 100+ emails, talk to 10+ people, and (maybe) sell to 1 of them. Your job is to pitch a growth story that's unlocked by a "partnership" that directly addresses a buyer's needs.
Banker or No Banker?
You can do all of the below, or get a banker. They will do all of the below for you, which is why they charge for their services (usually 2-5% of the deal size). Sounds like a lot but trust me, in some cases it's worth it. See Should I Hire an Investment Banker?
If no banker, read on.
I'm going to teach you how to build a lead list for finding acquirers. We'll break it down by buyer categories, then I'll show you exactly how to find the right people and what to say to them.
We'll cover three main buyer categories: Private Equity firms (the most structured and easiest to research), Public Strategic Buyers (easier to find information on and usually have more capital), and Private Strategic Buyers (companies in your industry or adjacent markets).
You want a Strategic Buyer. But PE will do (don't kill me PE peeps i luv u too)
Private Equity: The Easiest to Research
PE is honestly the most structured and predictable buyer category. They have clear criteria, documented investment theses, and follow repeatable processes.
PE Requirements
You need to be profitable. The exception is if a PE firm wants to strategically acquire you to sell your product into their existing portfolio or do a "tack-on" or "bolt-on" acquisition to a "platform" they've already bought.
The lingo: Platform is the big asset they own, then they want to do tack-ons, add-ons, etc. to that big one to inorganically increase revenue and add cross-sell opportunities. Everyone hates the bolt-on strategy until they see PE firms 3x their money in 3 years with it.
Using AI to Find PE Buyers
You need three key numbers:
- Your EBITDA
- Your revenue
- Your growth rate
Three numbers decide if PE calls you back: revenue, EBITDA, and growth rate. That's it. Then you need to find PE firms investing in your niche and/or your deal size.
Use this prompt to find potential PE buyers:
It's not going to be perfect, but it's going to be a damn good start. From there, you gotta do the work to get warm intros to them, etc. This takes a while, but it's worth it! ... and again, you can just get a banker. I can't believe I'm promoting using a banker, but damn, once you do this process, you start to appreciate them.
Making Contact
Once you have your list, it's time to go to town: LinkedIn perusing, asking for intros, reaching out directly. Here's exactly what to say:
What Happens Next
After you make contact, things can go one of many ways—too many to list here for now. Email me if/when you get to this stage and have questions about what to say. I don't want your money, I just get a dopamine hit helping people get life-changingly rich.
If they're not in a rush:
Cut them loose. Let them know: "Hey, it seems this isn't interesting/urgent enough for you to prioritize right now—no sweat. Let me know if anything changes."
If they want to book a call with an associate:
Ask these questions via email first. Don't get on a call with them yet.
"I'm trying to save both of us time—mind answering the below questions before we hop on a call?"
- Do you guys own any platforms for which we might be a good bolt-on candidate? Or are you thinking of us as a platform play? Or something else?
- What are the last few deals you guys have done? What were the EBITDA/revenue multiples you did them at?
- Do you guys have the dry powder to do a deal like ours in the next 3 months?
- Do you usually do minority or majority deals?
- Based on what you're seeing in the market, what are ballpark multiples (range is fine) you're seeing right now for an asset like ours?
Why this works: Sending these questions signals to them that you know what you're talking about, which is GREAT! They want to do deals with people who know the game, rather than someone who is brand new and they can't predict how they might think/act.
Alright, that's enough on PE for now—there are other questions that will go deeper into this, so browse around.
Public Strategic Buyers
Next up is strategic buyers. Let's start with publics—they are easier to find information on and usually have more capital to deploy.
How Public Companies Think
Public companies only care about one thing: Will this make our stock go up?
What to research: Recent earnings calls, analyst reports, stated strategic priorities, quarterly guidance
Red flags: Poor stock performance, activist investors, recent leadership turnover
Using AI to Find Public Strategic Buyers
Public companies are goldmines of information. They're required to disclose everything: financials, strategic priorities, M&A activity, leadership changes. Use this to your advantage.
Use this prompt to find potential public strategic buyers:
Private Strategic Buyers
How Strategic Buyers Think
Strategic buyers have two questions: Will this make us more money or save us money?
What to research: Their product roadmap, recent partnerships, geographic expansion plans, customer overlap
Red flags: Recent major acquisitions (integration fatigue), leadership changes, declining core business