What is Proprietary Search (Cold Calling)?
The Short Answer
Proprietary Search (Cold Calling) explained simply
Proprietary search, often called cold calling, is a direct approach used by buyers to find businesses to acquire. Instead of looking at businesses already listed for sale, the buyer identifies companies that fit their criteria and then contacts the owners directly. The goal is to start a conversation about a potential sale, even if the owner hasn’t publicly expressed an interest in selling. This method can uncover unique opportunities that aren’t available through traditional channels.
Real-World Example
Finding an Off-Market Bakery
Imagine a buyer, "Sarah," wants to acquire a bakery. Instead of browsing online listings, she researches local bakeries that meet her specific criteria (e.g., established for over 10 years, good online reviews, specific location). Sarah then directly contacts the owners of these bakeries, introducing herself and expressing her interest in a potential acquisition. One owner, "Mr. Henderson," had been considering retirement but hadn’t listed his bakery for sale. Sarah’s proprietary search led to a direct conversation and eventually, a successful acquisition.
Why this matters
Proprietary search matters because it allows buyers to find businesses that aren’t publicly on the market. This can lead to less competition and potentially better deal terms. For sellers, it can mean a discreet sale without the public announcement that often comes with listing a business.
Cold calling for acquisitions is about building relationships. Don’t just pitch a sale. Understand the owner’s situation and see if an acquisition makes sense for them.
Cold calling for acquisitions is about building relationships. Don’t just pitch a sale. Understand the owner’s situation and see if an acquisition makes sense for them.
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