home  /  sourcing & target identification  /  approaching an owner
stage two · finding companies worth talking to

Approaching an owner.

You are asking someone to contemplate parting with their life's work, usually before they have considered it. Almost everything that goes wrong here goes wrong in the first paragraph.

begin here

Where are you in the journey?

Start a private conversation with the Acquisition Concierge, already scoped to approaching an owner. Pick a starting point, or describe your situation directly.

Acquisition Conciergeapproaching an owner · orientation, not a substitute for your own advisors
Worth getting right, first approaches are easy to get wrong and hard to redo. Tell me about the company and how you are connected to it, if at all, and we can work through how to frame the first contact.

For most founders, a business is not an asset with a price; it is thirty years, a reputation among people they see socially, and the livelihoods of staff they hired personally. An approach that treats it as an asset, leading with a valuation, a process, or urgency, reliably produces silence, and often a closed door that stays closed. What works is slower and less transactional: evidence that you know what the company actually does, a clear account of who you are and why you are interested in this business rather than a category of business, an explicit assurance about confidentiality, and no request beyond a conversation. The goal of a first approach is a second conversation. Nothing more.

mechanisms

What determines whether an owner engages.

Owners describe the same handful of reasons for engaging, and the same handful for not replying. Neither list is about price.

Evidence you understand the business

Something specific and accurate about what they do. Generic praise reads as a mail merge and is treated as one.

A named, identifiable buyer

Who you are, what you own, and why this company. Anonymous approaches are assumed to be intermediaries fishing.

Explicit confidentiality

A stated commitment that the conversation stays private, the first concern of nearly every owner approached.

Absence of urgency

No deadline, no process, no exploding interest. Pressure signals a transaction rather than a relationship.

Regard for what happens next

Interest in the staff, the customers and the name. For many owners this outranks price and is rarely mentioned by buyers.

A small, easy next step

A conversation with no obligation. Asking for financials in a first approach ends most of them.

methodology

What the evidence shows — and what we examine.

How the Institute helps with an approach.

Drafting the first contactFraming an approach that reads as considered interest from an operator rather than a solicitation from a process.
Choosing the channelDirect letter, a mutual introduction, an accountant or lawyer, or a trade relationship, each lands very differently.
Preparing for the first meetingWhat to ask, what not to ask yet, and how to leave an owner willing to have a second conversation.
Confidentiality mechanicsWhen an NDA belongs in the sequence, and what it should and should not attempt to cover at this stage.
what's at stake

What a mishandled approach costs.

Owners in a given industry know one another. A clumsy approach is rarely contained to the company that received it.

a permanently closed door reputation across the sector unintended disclosure of your intent unsettled staff at the target an anchored price expectation months of rebuilding trust

The tone that works.

"We admire what you have built. We are not running a broad search and there is no process here, we are exploring whether there might eventually be a thoughtful way for our two organizations to work together." No price. No deadline. No ask beyond a conversation.

common questions

The approach, practical questions.

Should I mention price in a first approach?

No. A number in a first letter does two damaging things at once: it converts a relationship overture into a transaction, and it anchors an expectation before either party knows anything. If the number is low it is insulting; if it is high you have bid against yourself before diligence. Owners who are ready to discuss value will raise it themselves, usually in the second or third conversation, and at that point the honest answer is that a range depends on what the financials show.

What if the owner has partners or family shareholders?

Find out before you approach, because approaching the wrong person can end the conversation permanently and noisily. Multi-owner private companies frequently have shareholders with sharply different appetites, one ready to retire, another mid-career, a family member not in the business at all, and an approach that reaches them out of order can create internal conflict the owner blames on you. Where ownership is unclear, an introduction through a trusted mutual contact is usually safer than a direct letter.

How persistent should I be if there is no reply?

Persistent over years, not over weeks. A reasonable cadence is an initial approach, one follow-up after several weeks, and then a genuine pause, a note perhaps annually, ideally attached to something real like an industry development or a piece of news about their company. Owners consistently report that the buyer they eventually transacted with was the one who stayed in touch politely and without pressure over a long period. Frequent follow-up reads as a process working a list, which is precisely the impression that closes doors.

When should an NDA come into it?

When information is about to be exchanged that genuinely needs protecting, usually when the owner is ready to share financials, and not before. Leading with a confidentiality agreement makes a first approach feel legalistic and transactional, which is the opposite of the intended signal. At that later point, keep it mutual and narrow: a heavy agreement with non-solicits and exclusivity attached is a common way to make an interested owner reconsider whether they want to do this at all.

related

Related specialization areas & resources.

Before you send the letter.

Describe the company and how you would approach it. The Concierge will work through the framing with you.

Acquisition Conciergeorientation · not legal, tax or valuation advice
Worth getting right, first approaches are easy to get wrong and hard to redo. Tell me about the company and how you are connected to it, if at all, and we can work through how to frame the first contact.