Thread by @BroknClok

After my deal pursuit fell through, I let myself wallow for a day and jumped back in. I knew I needed to do something different, I needed added tools and process and I needed to sift through data faster. I also knew I needed different sources of input

I’m ashamed to admit (bcuz it now seems straightforward) I activated two new approaches: outsourced search to an offshore assist AND lots of cold outreach. I know, things I should’ve been doing since the beginning. My first opp came on too quick and I got complacent

I engaged a VA on Upwork. He was a great guy from Bangladesh. Took us a week or 2 to hit our groove but he got to where he was putting up 100s of cold leads a week. I also started cold networking on my own. I called everyone in my network with any connection to finding a biz.

1st break came from my finance advisor. She is an ex-atty, had a colleague who worked for a sell-side advisor. Had a ☕️ w/ him. Introduced me to a local atty who did lots of M&A and a boutique Investment Banker, also local. Those 2 intro’d me to others and so on…

Talking to that network gave me insights into the search, LOI and negotiation process. It helped me really frame how to approach Owners. While this was going on, I was still sorting leads from my VA and my own research.

I started sending cold letters of intro to specific targets. This letter was less than a page, info on me, my targets and why I was a good candidate to take over a biz that an Owner had built and wanted to see grow. Also included a pic to humanize me.

Some Owners ignored me, most were willing to engage in some type of conversation simply because my letter showed I had good intent and wasn’t traditional PE. I even had a call w/ a traditional PE who ended up owning a biz I had targeted. Most people are nice and willing to talk.

My current break came through #SMB Twit. I started publicizing my criteria. @RegZeller was kind enough to make an intro to someone he knew in my geography. That gentleman (current Seller) and I hit it off. We started over email, he invited me to see his shop.

He’d been working in #manufacturing for 40yrs. We spoke regularly. He gave me leads on others looking to retire. I shared about various trends I was seeing in the industry. Nothing specific per company, e.g.- how many co’s work in certain mat’ls, how many using robots, etc.

I asked him a lot of questions about his history. What worked over the years? What failed? I was completely open about my own career, successes and failures. I asked him very pointed questions, seeing how honest we could be. It ended up being a 2mo long interview of each other

NOTE: through this, I am still searching and running my process.

One day, he turns to me and says, “Well? What do you think? Do you want to be a part of it?”

And so we started a different discussion. More to come on that later…