‘Internal’ outreach for maximum origination results
March 1, 2018
There are two major differences when comparing CAPTARGET’s deal origination service to that of a buy-side firm…
- We do not charge success fees for sourcing an opportunity
- We do not represent ourselves as a third party
So, who are we to a seller of a company?
We get this question a lot – ‘If you are not a buy-side firm, and you don’t represent yourself as a third party, who do these targets think you are?’. The short answer is you. When we conduct outreach on our private equity or corporate development clients’ behalf, the initial solicitation looks and feels as if it comes from the private equity firm that we are working for. We do this by setting up similar alias email addresses that appear to still come from your domain. With most of the initial communication being conducted online, very few prospects ever know anyone else is involved in the process, providing a fully white labeled service that puts your firm first.
Why do we represent ourselves as an extension of your firm?
After years of testing, the data supports one clear truth – injecting a visible third party into the origination process depresses nearly all success metrics (email open rates, response rates etc.). Many potential sellers worry about having to pay a broker and simply write off the solicitation prior to ever learning more. We believe that all good origination campaigns have a ‘numbers game’ element to them. As such, we need to ensure that all performance metrics are in your favor. Consider this – a 10% improvement in response rate annually will net our average client an additional 15 calls per year. When searching for valuable needles in haystacks, we need to ensure that each effort returns at maximum.
Beyond campaign performance, having a white-labeled origination effort also allows each of our clients to fully own any and all lead flow derived from our efforts. This means we never warehouse deals or refer them to other parties. If a prospect responds to what they believe is a communication from your firm, you own it, plain and simple.
White-labeling our origination effort means our team is working on your behalf in the marketplace. To keep everyone aligned and to minimize any other potential issues, we provide the following assurances:
- We never sell, we just gather information, and/or qualify targets depending on engagement scope
- Our clients retain full approval rights of all prospect lists, email content or phone call talking points we may use
- All email outreach is done in a ‘glass box’ so clients can see each and every communication, supported by periodic reporting
The benefits of running a white-labeled origination effort are clear. Our clients save an average of approx $500k per year in success fees, and own more of the process all while paying a low monthly fixed fee.