Buyers want quality deal flow, but too often sellers don’t have a good sense of their investment criteria.
In fact, these days “private equity firms all sound alike in what they are looking for,” said Allegiance Capital chairman David Mahmood, during a recent Navatar roundtable on “Why Buyers Must Redefine Their Intermediary Deal Sourcing Strategy.”
Given that boutique intermediaries control access to a majority of transactions in today’s deal market, buyers need to build relationships with a large number of boutiques. At a minimum, they have to make sure all these intermediaries know about their current investment strategy, so that bankers and others can channel the right investment opportunities to them.
Here are some of the approaches that buyers commonly use: