How Do I Find Potential Acquirers?
Research buyers by studying their recent acquisitions, understanding their strategic gaps, analyzing their customer base overlap, and identifying their growth initiatives. The best predictor of future acquisitions is past acquisitions. Hunt where they've already been hunting.
Understanding Different Buyer Motivations
Strategic Buyers
What they want: Market expansion, technology gaps filled, competitive threats eliminated
How they think: Will this make us more money or save us money?
What to research: Their product roadmap, recent partnerships, geographic expansion plans
Red flags: Recent major acquisitions (integration fatigue), leadership changes, declining core business
Private Equity Buyers
What they want: Predictable cash flow, growth potential, management team that can scale
How they think: Can we 3-5x our investment in 3-7 years?
What to research: Their portfolio companies, typical hold periods, industry focus
Red flags: Fund is near end of life, no relevant industry experience, unrealistic growth expectations
Public Company Buyers
What they want: Earnings accretion, market share growth, technology capabilities
How they think: Will this help our stock price and quarterly results?
What to research: Recent earnings calls, analyst reports, stated strategic priorities
Red flags: Poor stock performance, activist investors, recent leadership turnover
Research Process
Don't pitch to buyers, pitch to their problems.
Step 1: Map Their Acquisition History
- Check Crunchbase, PitchBook, or CapIQ for recent deals
- Look for patterns: deal sizes, company types, integration success
- Identify their M&A team and decision makers
- Note their typical timelines from first contact to close
Step 2: Understand Their Business
- Read recent 10-K filings (public companies) or investor presentations
- Study their competitive positioning and market challenges
- Identify gaps in their offering that you could fill
- Look for customer overlap or complementary customer bases
Step 3: Find the Right Contacts
- LinkedIn research on their corp dev, strategy, and business development teams
- Look for warm introductions through your network
- Check if they've spoken at industry conferences
- Identify executives who might champion your deal internally