Search Fund Closes First Acquisition in 90 Days Using AI-Powered Sourcing

The Challenge

A first-time searcher had raised a traditional search fund and was three months into the search with limited results. The searcher had screened approximately 200 companies manually using a combination of PitchBook, LinkedIn, and industry directories, but had only identified 12 companies that met the thesis criteria. Of those, only 3 owners responded to outreach, and none progressed beyond an initial conversation. The search fund investors were supportive but beginning to ask questions about pipeline velocity. The searcher needed to dramatically increase the volume of thesis-matched targets without hiring additional help.

The Solution

DealsByTed was deployed on the Scout plan with a tightly defined thesis: IT managed service providers, $2M-$7M revenue, founder-owned, 15+ years in operation, located in the Midwest, with recurring managed services revenue representing at least 50% of total revenue. Ted identified 47 qualified targets in the first week alone — more than the searcher had found in three months of manual work. Each target included ownership verification, estimated revenue range, employee count, service mix analysis, and direct contact information for the owner. The searcher focused exclusively on outreach and relationship building while Ted maintained a continuous pipeline of new targets.

Results

• 47 qualified targets identified in the first week
• 142 total thesis-matched targets delivered over 90 days
• 23 owner conversations initiated (16% contact-to-conversation rate)
• 3 LOIs submitted within 90 days
• 1 acquisition closed at 4.2x adjusted EBITDA
• Total DealsByTed cost through close: $9,000 (3 months on Scout plan)

Timeline: First targets in 24 hours. LOI submitted at day 60. Closed at day 90.