7 Tactics for Finding Off-Market Deals That Actually Work

Off-market deals are the holy grail of lower mid-market M&A. No auction, no competitive bidding, no broker maximizing seller proceeds. Just a buyer and a seller having a direct conversation about a transaction that works for both parties. Here are seven tactics that actually produce off-market deal flow.

1. AI-Powered Direct Sourcing

The most scalable approach to off-market sourcing is AI-powered identification and outreach. Ted scans thousands of companies weekly against your thesis criteria, verifies ownership and financials, and delivers qualified targets ready for direct outreach.

Why it works: Coverage. A human analyst can research 20-30 companies per day. An AI agent screens thousands daily. In off-market sourcing, the law of large numbers applies — the more thesis-matched companies you identify, the more acquisition opportunities you find.

The key: The AI does the identification and qualification. The human does the relationship building. This division of labor maximizes both coverage and conversion.

2. Professional Advisor Network

CPAs, wealth advisors, estate planning attorneys, and business insurance agents have a direct line to business owners. And they are often the first people an owner talks to when they start thinking about an exit.

How to build it: Identify the top 20-30 professional advisors in your target geography and industry vertical. Reach out with a specific thesis. Explain what you are looking for, what a transaction looks like, and how you treat sellers. Meet quarterly to stay top of mind.

Why it works: Advisors are trusted by the owner. A referral from a CPA carries more weight than any cold outreach. And advisors are motivated — they want their clients to have good outcomes, and they appreciate working with serious, professional buyers.

3. Industry Event Immersion

Not conferences where every PE firm has a booth. The actual industry events where business owners go. HVAC trade shows. Dental conferences. Regional landscaping association meetings.

How to do it: Attend as a participant, not as a buyer. Learn the industry. Talk to owners about their business, not about selling. Build relationships over multiple events. The deals come 6-18 months later when the owner remembers the thoughtful conversation you had about industry trends.

4. Content-Driven Inbound

Publish industry-specific content that business owners find valuable. Market reports, valuation benchmarks, succession planning guides, industry trend analyses. Distribute through industry publications, LinkedIn, and direct mail.

Why it works: Owners who are thinking about selling (even 2-3 years out) are actively consuming content about valuations, deal structures, and succession options. If your content is the best resource they find, you become the first call when they are ready.

5. Retired Operator Network

Former business owners in your target industry are the best source of referrals. They know who is struggling, who is aging out, and who is quietly shopping their business. They also have credibility with active owners.

How to build it: After every acquisition or conversation with an owner (even one who does not sell), ask: "Who else in the industry should we be talking to?" Build a network of 10-20 retired operators who serve as informal advisors and referral sources.

6. Supplier and Vendor Intelligence

The companies that sell to your target businesses know which ones are growing, which ones are struggling, and which ones have owners who are disengaging. Equipment distributors, trade suppliers, and software vendors all have this intelligence.

How to use it: Build relationships with the top suppliers in your target vertical. They hear things. They see buying patterns change. And they have a financial interest in their customers being acquired by professional operators who will invest in the business.

7. Direct Mail to Owner-Operators

Old school, but it works. A well-written letter to a business owner, referencing their specific company and industry, still generates responses. The key is volume and persistence — plan for 6-12 touches over 12-18 months.

The upgrade: Use AI sourcing (Ted) to identify the targets and gather the intelligence that makes each letter specific and relevant. Then use direct mail as the delivery channel. The combination of AI-powered targeting with human-authored outreach is the most effective off-market sourcing tactic in the lower mid-market today.