Simple But Highly Effective Deal Sourcing Marketing Plan Template

Many times we know what we want to do, yet have difficulty figuring out where to start.  If you are looking to acquire a company here is a simple template to get some ideas captured about starting the deal-sourcing process. 

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Simple But Highly Effective Deal Sourcing Marketing Plan Template 

1. Goal or Objective: When we define goals we are talking about “S.M.A.R.T” goals.  Specific. Measurable. Attainable. Realistic. Timely.
2. Benefits:  In terms of benefits, not features.  What makes you different from your competitors?   Again state “What do you offer as a buyer that sets you apart from all the others.”
3. Ideal Target Business to acquire (Target Market): Be specific. 
4. Niche:  The target business is who you are looking for, the niche is how they serve Their client.  This is used to help focus your target market and focus your language when you speak to them. 
5. Unique Selling Points: Now that you know your benefits, ideal customer, and niche, Which benefit do you think makes you stand out as “the choice”?
6. Desired Brand or Identity:  What do you want people to say about your business when you’re not around?  What image do you want the market to have when they think of your company?   This is important because many markets are like small towns, they all know each other's business.  If you’re looking to buy a concrete company that does residential foundations in the Dallas metro market, there is a finite set of these.  Burn one, and the others will know. 
7. Marketing Methods:  What Marketing tools do you currently use, and what ones do you feel would be great to use?
8. Tracking ROI:  Plan and create ways to track the results of each of your marketing activities.
9. Pricing (Valuation) Strategy:  are you buying the cheapest, most expensive, somewhere in the middle?  Determine your price point and how you will justify your price to the consumer.
10. Budget: How much are you willing to invest in acquiring a business?

 Bonus work - Knowledge of Customer:   (make your best guess and adjust this as you learn more).

What is their decision process?  

Is this a need or a want?   (Need – Illness, divorce, partnership split-up, or relocation    Want - retirement, new project, burned out)

What emotional triggers are tied to their decision?  (trust, rapport, safety, etc)

What are the key decision factors? Is it price, vision, security, etc?

Where do they go for information? (This could be their CPA or attorney)

What kinds of information will be most effective? (How do they consume information? Read, watch videos, listen to podcasts, etc…)

Is price more important than a safe pair of hands?  What about ease of working with you?

 Simple But Highly Effective Deal Sourcing Marketing Plan Template

With examples

Goal or Objective: When we define goals we are talking about “S.M.A.R.T” goals.  Specific. Measurable. Attainable. Realistic. Timely.

Example:

1. Acquire First __type___ Company within the next 12 months.
2. Acquire 1 to 2 companies per year that expand our market reach and adds to our revenue, talent pool, or services an unmet needs (by us) of our existing clients. 

 

Benefits:  In terms of benefits, not features.  What makes you different from your competitors?

Example:

1.   Knowledgeable - 30 years of industry experience, lead sales manager, growth of sales by XYZ
2.   Trust and Safety – I Buy and Hold – I’m a safe pair of hands.  I plan on holding this company for at least XX years.
3.   Growth – “Existing Connections in the industry.” This business they built will grow and thrive if they chose you. 
4.   An earlier exit, I want to be the operator, you can exit after x months of training.

Again state “What do you offer as a buyer that sets you apart from all the others.”

 

Ideal Target Business to acquire (Target Market): Be specific.

Example: 

1.   Revenue size: $3M+
2.   SDE/EBIT:  $600k+
3.   Growth (year over year): 10%+
4.   The number of employees:  10+
5.   Location:  within 30 miles of _______ City
6.   Who do they serve (customers):  describe their customers (this is very important if you’re acquiring to grow an existing business, you want to define the customers in detail.  This will allow you to cross-sell into the acquired customer base).

 

 Niche:   The target business is who you are looking for, the niche is how they serve Their client.  This is used to help focus your target market and focus your language when you speak to them.

Example:

1.   If your target market is construction, this may be concrete foundation work.
2.   If your target is growing say your pest control business and you are looking to acquire a cleaning service – (who sees more bugs than the cleaning lady). You may have a niche of cleaning companies that service mid-market homes.
3.   If your Target Business is “b2b revenue generating content websites” your niche may be the SMB (Small Medium Business) space.

 

Unique Selling Points: Now that you know your benefits, ideal customer, and niche, Which benefit do you think makes you stand out as “the choice”?

Example: 

1.   Safe pair of hands (if a company is more than 10 years old and has employees that have worked for them for over 5 years, these employees are important to them, often more important than money
2.   Legacy, They have built this business from the ground up, and have tied their personal identity to their brand, very often this legacy (you’re not going to soil their good name) is more important than money
3.   A plan – showing the owners a vision of where you will take this business and what that means to their employees.

 

 Desired Brand or Identity:   What do you want people to say about your business when you’re not around?  What image do you want the market to have of your company?

This is important because many markets are like small towns, they all know each other's business.  If you’re looking to buy a concrete company that does residential foundations in the Dallas metro market, there is a finite set of these.  Burn one and the others will know.

Example:

I want to be seen as Honest, Fair, Systematic, and Authentic, even if the deal doesn’t make sense, when we are done, I want the owner to be willing to introduce me to others in this space.

Marketing Methods:  What Marketing tools do you currently use and what ones do you feel would be great to use?

Example:

  Direct outreach – via Linkedin, cold emails, snail mail.

  Business Networking – Meeting as many CPAs, Attorneys, etc in your target markets

  Industry trade shows

  Brokers

Tracking ROI:   Plan and create ways to track the results of each of your marketing activities

Example:

1.   How many actions did you take (Sent 100 LinkedIn connection requests, 100 cold emails, 1000 letters)
2.   Got XX responses
3.   Set up X Calls
4.   Got X LOI’s
5.   Closed X deals

 

Pricing (Valuation) Strategy:  are you buying the cheapest, most expensive, somewhere in the middle?  Determine what your price point is and how you will justify your price to the consumer.

Example:

I’m paying between 2x SDE and as much as 4x SDE (The 4x would have to be the perfect company).

 

 Budget:   How much are you willing to invest in acquiring a business?

Example:

1.   I have $500K to invest
2.   I’ll spend 10% or up to $50k on sourcing the deal.

 

Knowledge of Customer:   (make your best guess and adjust this as you learn more).

What is their decision process?    They must trust us, understand our plan, agree to our terms and sign the required documents.

 Is this a need or a want?   (Need – Illness, divorce, relocation,  Want - retirement, new project, burned out)   I’m looking for companies that must sell.

What emotional triggers are tied to their decision?  (trust, rapport, safety, etc)

What are the key decision factors? Is it price, vision, security, etc?

Where do they go for information? (this could be their CPA or attorney)

What kinds of information will be most effective? (How do they consume information? Read, watch videos, listen to podcasts, etc…)

Is price more important than a safe pair of hands?  What about ease of working with you?

 3 Part video on how to use this doc: 

Part 1 https://www.loom.com/share/5259cda291d04f279dacffb034151321

Part 2 https://loom.com/share/2d25a27d90a84e79b9cd6e44e15673b5

Part 3 https://www.loom.com/share/78fb7a8fd0b24310b3225c4a9c068a48

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