How to increase your M&A deal flow?

As a business leader, one of your top priorities is generating growth. To do this, it is in your interest to access new technologies and/or develop internationally, particularly through mergers and acquisitions. To do this, you need a strong, continuous pipeline of proprietary deal flow. Here are four practical tips to help you increase the quantity and quality of your business's deal flow.

Your personal and professional networks are sources of rich business flow. If you're not already doing so, make a point of regularly reaching out to people in your network (for example, by email, social media, or phone) and letting them know what's going on in your business. Additionally, let them know that you are always on the lookout for merger and acquisition opportunities and would appreciate any leads they may have. You'd be surprised how many people are willing to help you if they know what you're looking for!

Social media platforms such as LinkedIn and Twitter can be excellent sources of deal flow if used correctly. Start by following industry thought leaders, commentators and journalists to stay up to date with the latest news and developments in your industry. Then, when you see an interesting article or post that might be relevant to your business, share it with your network with a comment or brief analysis of your own. Not only will this help you position yourself as a credible authority in your field, but it will also give you the opportunity to connect with potential buyers who might be interested in what you have to say.

Another great way to generate deal flow is to attend relevant industry events. Not only will this give you the opportunity to meet potential buyers face-to-face, but it will also allow you to keep up to date with the latest industry trends. This knowledge will come in handy as you evaluate potential acquisition targets. When choosing which events to attend, consider the size, importance and purpose of the event. Smaller, more intimate meetings generally result in more productive conversations than large trade shows or conferences.

If your company is serious about generating exclusive deal flow, you should consider hiring a business development manager whose sole responsibility is to identify and pursue acquisition opportunities. The best business development executives are typically very knowledgeable people with extensive experience in their industry. They also tend to be ambitious, self-starters who are comfortable taking initiative and working independently. If you don't have the budget to hire a full-time business development manager, you may want to consider hiring a consultant or firm on a flat fee basis.

Finally, the most effective way to find M&A opportunities is to leverage AI to map all relevant targets. Collaboration Capital's algorithms allow you to discover all the target companies around the world that match your criteria. Then, by contacting validated targets, you put yourself in touch with managers interested in selling their business.
‍
Depending on the activities and sizes, between 10 and 40% of managers are interested in selling their company. In addition, by contacting them directly, you access off-market opportunities: the targets have not yet launched the search for buyers, and you are the first to have the information.

A clean deal flow is essential for all CEOs who want to expand externally to generate value through mergers and acquisitions. By following these five actionable tips, you can ensure your business has a continuous pipeline of high-quality acquisition and divestiture opportunities.