Proprietary Deal

An investment opportunity sourced directly without broker involvement, typically resulting in less competition and better pricing for the buyer.

A proprietary deal is an acquisition opportunity sourced directly by the buyer without intermediary involvement, typically through direct outreach or relationships.

Why Proprietary Deals Matter

Lower Competition

  • No other buyers in process
  • More negotiating leverage
  • Less time pressure

Better Pricing

  • No auction dynamics
  • 10-30% discount vs. marketed deals
  • More creative deal structures

Stronger Relationships

  • Direct seller relationship
  • Better information flow
  • Smoother transition

How to Source Proprietary Deals

  1. Direct mail/email campaigns

    • Target business owners by industry and size
    • Consistent, personalized outreach

  2. Industry networking

    • Trade associations
    • Industry conferences
    • LinkedIn engagement

  3. Professional referrals

    • CPAs and accountants
    • Business attorneys
    • Wealth advisors
    • Insurance agents

  4. Customer/supplier relationships

    • Acquire vendors or customers
    • Industry knowledge advantage

Proprietary Deal Economics

Marketed Deal:        4.5x EBITDA
Proprietary Deal:     3.5x EBITDA
Savings on $1M EBITDA: $1,000,000

This savings often exceeds the cost of an entire search.

Related Terms

deal flowauctiondirect outreach

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