We've bought 3 software companies recently.
Want to find your first deal?
5 uncomfortable things I'd say if we hopped on a call:
See a Lot of Deals
The more deals you can look at the better.
It is all about getting reps in.
You really don't know what a good deal looks like until you see a lot and can calibrate.
Skip Proprietary Sourcing
Most people (including me) find their first deal through a broker or marketplace.
@acquiredotcom is the spot for most small SaaS acquisitions now.
Outbound (and inbound) are great, but they take a long time to work out.
Build a Filter
There's an endless number of deals to look at.
Protect your time and only focus on the ones that meet your criteria.
If I'm taking a meeting, it means I'm actually interested.
Refine your filter over time. Some will be too broad and too narrow.
All Deals are Flawed
Every small deal has hair on it. Perfect deals don't exist and if they did, you couldn't afford them.
Just be confident the issues are a match for your skills.
Almost all problems are fixable.
Deals Die
Once an LOI is signed, statistically only a quarter of those deals get completed.
Things come up in DD or the seller isn't serious about selling.
Keep your funnel full.
TLDR Finding Your First Deal
- Skip Proprietary Sourcing
- All Deals are Flawed
- See a Lot of Deals
- Build a Filter
- Deals Die