The Inexpensive Business Development Tools for Direct MicroCap Investors
A recent post on the Axial Forum looked at “The Best (and Least Expensive) Business Development Tool for Private Equity.” Many of those principles can be applied to microcap deal sourcing.
The author, Brandon Labrum of Fund Lab, shared four deal sourcing tips for investors and advisors regardless of types of deals they do.
1. Newswires alone weren’t built for PE deal marketing – While newswires are often the quickest way to reach as many media outlets as possible, they rarely get to the people you are trying to market to.
2. Relationships matter with outlets that matter – There are usually a handful of news outlets that cover the small/microcap space. These outlets get a lot of attention from the types of people you are trying to attract. Labrum suggests building relationships and communicate directly with them.
3. Go deep in your industry – Microcap investors should not only focus on small/microcap media but they should also look at specific industry news outlets. Labrum says that while broad marketing is a great way to attract intermediaries, industry specific publications can be a great source of proprietary deal flow.
4. Be thoughtful about the presentation – The financial industry isn’t know for visual appealing email marketing campaigns but being thoughtful about design can go a long way towards standing out.