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department of sourcing & target identification

Where the companies actually are.

Most private companies are never listed for sale. Understanding the routes by which they change hands is most of what separates a productive search from an expensive one.

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Where are you in the journey?

Start a private conversation with the Acquisition Concierge, already scoped to sourcing & target identification. Choose the question closest to yours, or describe your situation directly.

Acquisition Conciergesourcing & target identification · orientation, not a substitute for your own advisors
Happy to orient you. Tell me what you are looking for and how much time you or your team can realistically give a search, the right mix of intermediated and direct approaches depends heavily on both.

The market for private companies is not a market in any organized sense. A minority of businesses run a formal sale process through an investment bank or an M&A advisor; a further slice appears on broker listings; and a very large remainder is owned by people who would consider a sale under the right circumstances but have never told anyone so. Each of those populations is reached differently, costs a different amount to reach, and produces a different kind of transaction. This stage covers who the intermediaries are and what each genuinely does, how proprietary outreach works when it works, and how to approach an owner without turning a possible conversation into a closed door.

specialization areas

The routes to a target.

Three approaches, usually combined rather than chosen between. The question is which mix fits your thesis, your timeline and your appetite for direct effort.

methodology

How this department investigates.

How the Institute helps at the sourcing stage, orientation and selection, not deal origination.

Route selectionWhich combination of intermediated, listed and proprietary search fits your thesis, size range and timeline.
Advisor selectionWhat to look for in a buy-side advisor or broker, what to ask them, and how to compare candidates on something other than confidence.
Market mapping orientationHow a market map is built and what a good one contains, so you can judge the quality of one you are shown.
Outreach approachHow direct approaches to owners are framed so they open a conversation rather than close one.
Fee structure literacyHow intermediaries are typically paid, what a retainer buys, and which structures align with your interests.
Confidentiality disciplineManaging a search without signaling intent to your market, your staff or the target's.
common questions

Sourcing, the questions owners ask.

What is the difference between a business broker, an M&A advisor and an investment bank?

Broadly, transaction size and the nature of the process, though the labels are not regulated and firms self-describe inconsistently. Business brokers typically handle smaller owner-operated companies, often working from listings and frequently representing the seller. M&A advisors occupy the lower middle market and generally run a more managed, confidential process with a curated buyer list. Investment banks handle larger transactions with formal auction processes, detailed materials and institutional buyers. The practical implication for a buyer is that these populations barely overlap: searching only one route means never seeing most of the companies that would fit your thesis.

Do I need a buy-side advisor, or can I search myself?

It depends far more on your capacity than on your sophistication. A buy-side advisor is genuinely useful when you need proprietary outreach at volume, when confidentiality matters, or when nobody internally has time to run a search alongside their day job. Owners who know their industry intimately often source better opportunities themselves through relationships an outsider cannot replicate. What rarely works is retaining an advisor to compensate for an undefined thesis, the search then produces volume rather than fit, and you pay to evaluate companies you should never have seen.

Is a proprietary deal better than one from a banked process?

Not inherently, and this is a widely held belief worth examining. A proprietary deal is simply a deal without an auction. That can mean a better price and a more considered conversation with an owner who was not planning to sell. It can equally mean a company that no process would have cleared, a seller with unrealistic expectations who has never been tested by the market, or a business whose problems have never been examined by anyone but you. Absence of competition removes a price mechanism; it does not supply diligence.

How long should a search take?

For a specific thesis in the lower middle market, plan on twelve to twenty-four months from starting the search to closing, and expect most of that time to be spent on companies that do not proceed. Buyers who compress this are usually buying the first plausible company rather than the right one. The corollary matters for readiness: a search is a sustained commitment of attention, not a project with a deadline, and treating it as the latter is how buyers end up rationalising toward whatever is available when patience runs out.

Working out how to find companies?

Describe your thesis and your capacity. The Concierge will orient you on the routes and what each would actually require.

Acquisition Conciergeorientation · not legal, tax or valuation advice
Happy to orient you. Tell me what you are looking for and how much time you or your team can realistically give a search, the right mix of intermediated and direct approaches depends heavily on both.