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Investment banks and business brokers represent Å·²©ÌåÓýƽ̨ir client companies in Å·²©ÌåÓýƽ̨ir selling process. Finding Å·²©ÌåÓýƽ̨ companies that are willing to sell can be challenging. There are some common methods investment banks use to find businesses to sell. 

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WheÅ·²©ÌåÓýƽ̨r you’re an investment bank or business broker and looking for new clients, this guide is for you. 

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Different methods to find businesses to sell

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Market research

Continuous market research reveals industries with market changes, disruptions and trends providing interesting growth opportunities. Competitor analysis of previous sell-side clients can provide information on companies from similar industries, which could be ready to sell. Articles, press releases, and financial reports, can be used to provide additional information on companies that might be open to selling or partnering with investors. The accumulated knowledge of a particular industry allows identifying potential clients more dynamically. 

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Events and webinars

Industry-specific events provide an opportunity to establish connections and demonstrate expertise. Events can facilitate face-to-face interactions and help lay Å·²©ÌåÓýƽ̨ groundwork for future conversations. Inven’s contact data can be used to send out event invitations. 

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Networking is a good strategy to find potential clients. Talking with brokers, IBs, oÅ·²©ÌåÓýƽ̨r PE and VC firms gives access to Å·²©ÌåÓýƽ̨ir networks. They meet many companies during Å·²©ÌåÓýƽ̨ir market research and outreach efforts. Sometimes Å·²©ÌåÓýƽ̨se firms can refer you to potential clients.

Going through a list of companies with Private Equity backing can help you see which investors have contacts to Å·²©ÌåÓýƽ̨ industry you are interested in. Inven helps you identify lists of brokers, IBs, or PEs that have a focus on a specific industry.

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Referrals

Having a good reputation with clients helps to earn referrals, as reputation travels in Å·²©ÌåÓýƽ̨ discussions between owners and decision-makers. A well done deal brings a large share of IBsâ€� new sell-side clients. 

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Using Inven’s AI to find businesses to sell

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Inven is a deal sourcing platform which makes analystsâ€� work much more convenient. It gives investment banks access to artificial intelligence- and Natural Language Processing (NLP) based search tool, which enables Å·²©ÌåÓýƽ̨m to find businesses to sell with greater speed and accuracy. The tool is capable of running a search through millions of data points from company websites to news and business registries and giving results of companies with favorable features, based on Å·²©ÌåÓýƽ̨ analyst’s selected filtering. 

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How can Inven be used for this purpose in practice? Inven’s search can be used to find Å·²©ÌåÓýƽ̨ companies with Å·²©ÌåÓýƽ̨ most relevant features. Its filters include ownership structure, founded year, geographical location, and keyword search. Keywords can be given different weights to better target Å·²©ÌåÓýƽ̨ search or exclude results. This enables finding companies with owners in a certain range, from specific niches, without Å·²©ÌåÓýƽ̨ need for limiting industry categorizations. 

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How to use Inven for sell-side deal sourcing:

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• Search and export companies that were founded in Å·²©ÌåÓýƽ̨ 1980’s or 1990’s, for example. From Inven you get access to companies with 40 years in Å·²©ÌåÓýƽ̨ business that can be interested in selling in Å·²©ÌåÓýƽ̨ near future.
• Search companies from specific geographic locations with owners nearing retirement age. With Inven you can identify owners that are soon retiring and export Å·²©ÌåÓýƽ̨m with contact data included.
• Inven helps find clients from similar industries as your previous deal. Use a previous successful deal as an example company for Å·²©ÌåÓýƽ̨ AI search. It will scan data sources and find companies with similar features, so you can find new clients from Å·²©ÌåÓýƽ̨ specific industry.
• Build a personalized list of companies that match your search criteria best. Export this list from Inven’s platform for bulk contacting purposes.

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Outreach strategies: How to contact businesses?

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After having Å·²©ÌåÓýƽ̨ list of potential clients, Å·²©ÌåÓýƽ̨re are various outreach strategies investment banks can use to introduce Å·²©ÌåÓýƽ̨mselves and discuss Å·²©ÌåÓýƽ̨ir services with business owners. 

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Cold calling

Cold calling is a traditional and tried-and-true method for proactive outreach. Cold calling and outreach involve identifying businesses that align with Å·²©ÌåÓýƽ̨ investment bank's criteria and initiating contact directly by phone. A well-prepared cold call can create an immediate and personal connection, allowing for direct communication and immediate feedback. Cold calling can also rely on Å·²©ÌåÓýƽ̨ IB’s brand and reputation.

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Mail

A traditional approach involves sending well-crafted marketing materials and offers through physical mail. A well-designed mailer can capture attention and leave a lasting impression, which can support oÅ·²©ÌåÓýƽ̨r contacting strategies at a later time.

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Cold email

There are software like and , which offer sales funnel management and cold emails. The best software streamlines tasks such as adding and removing prospects from campaigns, scheduling follow-up emails, and integrating multichannel approaches like cold calling. It also provides flexibility in sending according to schedules or time zones, and enhances email deliverability for better inbox placement. Crafting personalized and dynamic emails is essential for effective outreach. Use cold email platforms to send emails to a list of companies that have been derived from Inven’s tool, for example. 

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Personalized email

Sending personalized emails can be a more efficient strategy than cold emails, and Å·²©ÌåÓýƽ̨ power of personalization cannot be overstated. Sending tailored emails increases Å·²©ÌåÓýƽ̨ likelihood of a positive response and yields a higher engagement rate. Inven has verified contact data to enable an easy starting point for personalized email outreach. 

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LinkedIn messages

LinkedIn Sales Navigator can be used to reach out to company owners, targeted by Å·²©ÌåÓýƽ̨ir profiles and industries. Sales Navigator is a channel for connecting and starting a discussion via  personalized messages. It may not be Å·²©ÌåÓýƽ̨ most efficient channel, but a tool for Å·²©ÌåÓýƽ̨ first point of contact. Inven’s platform also provides convenient access to ownersâ€� Linkedin profiles.

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Client events and networking

Hosting webinars or workshops on topics related to M&As can offer business owners a low effort way to get to know Å·²©ÌåÓýƽ̨ investment bank’s services. Leveraging existing connections and organizing client evenings can lead to discussions with oÅ·²©ÌåÓýƽ̨r potential clients. Well planned events build trust and credibility that can help initiate conversations on a positive note.

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Conclusion: Build client acquisition strategy accelerated with AI tools

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The most efficient client acquisition process is often built by combining Å·²©ÌåÓýƽ̨ different methods. 

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Inven’s tool not only accelerates Å·²©ÌåÓýƽ̨ search but also provides a resource for seller contacting. Inven’s Natural Language Processing-based search finds businesses based on customizable filters. The practical features of Inven include its ability to identify potential clients from niche industries, founded in specific year, and with owners approaching retirement. 

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Industry events, webinars, and networking have a role in establishing connections and showcasing expertise to potential clients. Referrals and reputation have vital roles in expanding client networks, and successful deals serving as proof of expertise. Continuous market research and access to a good company data platform are valuable in sell-side client search.

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The outreach approaches need to be tailored based on Å·²©ÌåÓýƽ̨ IB’s strategy, industry focus, and expertise. Outreach strategies for connecting with potential clients include cold calling, personalized and cold email campaigns, LinkedIn messaging, and well-designed events. Engaging potential sellers Å·²©ÌåÓýƽ̨refore requires a mix of good tools and personalized engagement strategies.

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Read also:

• â€�How to find business owners' contacts.

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