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Back to blog January 11, 2009 No Comments Author: Andy Jones

Contacting Private Equity Firms

If an M&A professional experiences difficulty getting good response rates from the private equity firms, it’s likely because he or she has yet to establish a solid working relationship with key contacts at these firms. Below is a best practice to contact the private equity firms about potential deal opportunities.

For best results (also the most professional approach), investment bankers first place a phone call to the key contact at the private equity firm for the deal at hand.

This introductory phone call:

  • Provides a brief introduction of the banker and his/her firm (very brief).
  • Gives the private equity professional a “heads up” that the banker intends to send an executive summary.
  • Describes how the opportunity fits within the private equity firm’s stated acquisition criteria or portfolio (or both).

A good script might follow this pattern:

“Hi. My name is Bob. I’m with XYZ Capital in [city]. We currently represent a client operating in the [fill in the blank] market. I noticed that you are active in this sector and think this would fit well with your [fill in the blank] portfolio company. Our client finished the year with $X EBITDA on $Y of revenue and has been growing a Z% per year. I just wanted to give you a heads up that I will be sending you the executive summary.”

While this approach requires more effort, private equity professionals are much more responsive when a banker demonstrates that he or she has done the required homework. The good news – provides the information and research tools to simplify this process for you.

By funneling potential deal flow to private equity firms that is aligned with their investment objectives, and by calling them in advance of sending your executive summary, you set yourself apart from the crowd… and you will get a good response with this approach.