The easiest way for PE and Corp Dev professionals to build more intermediary relationships
February 28, 2024
Bankers, lawyers, deal platforms, deal auctions, listing websites, direct marketing . . . it’s impossible to stay active on every front.
Building a strong intermediary represented deal pipeline should be kept simple. This means that you should – and can – consistently communicate with M&A professionals to ensure you see deal flow.
How? Utilize Captarget.
Let us explain why.
How many is ‘a lot’?
Many PE and Corp Dev professionals we talk to confidently state ‘We already talk to a lot of intermediaries.’. While this is often true, the phrase ‘a lot’ can be very subjective. Does your firm talk to dozens of firms? Hundreds? Thousands?. There are more than 13,500 middle market focused intermediaries in the market right now. Unless you are speaking with most of them fairly often, there is room to significantly expand your intermediary relationships.
The platform problem
Certainly, there are a number of platforms that help PE or Corporate buyers reach more intermediaries, we have even worked with a few of the major ones. These platforms or matchmaking networks are functional to a point but have one big drawback – the double opt-in, or two-sided market problem. In order for you to connect with an intermediary, they need to be active on the platform. Even the best deal marketplaces only represent about 50% of the active dealmakers in the market, leaving significant opportunities unearthed.
The simple solution
Our non-proprietary origination service (which starts at $1,500 per month) is a great way to solve both challenges stated above. By reaching out to nearly 13,500 middle market focused intermediaries, via email, we can accelerate your efforts, play a bit more of the ‘numbers game’, and help your firm manage the new activity that comes from an accelerated effort. Rather than relying on fragmented platforms or tools, we keep things simple by managing all the direct outreach in a white-labeled capacity to ensure the information and relationships captured belong to your firm. Often times, the simple solution is the best – good deal origination doesn’t have to be about being on the bleeding edge, it just needs to be functional and consistent.
Whether we manage this process or your firm manages it internally, the fact remains, you should be speaking to many thousands of intermediaries consistently to maximize your deal flow and running warm email campaigns to a well-curated audience is the easiest, most cost-effective way to accomplish this. For details on how we manage sourcing deal flow from nearly 13,500 intermediaries, please feel free to contact us or visit our origination page here for more information.