While large investment banks are essential for major transactions, mid-tier banks are often better partners for proactively sourcing carve-out opportunities. They typically have to hustle more for deals, resulting in deeper, more personal relationships within potential sellers, which can unlock the off-market conversations that larger banks might miss.

To source proprietary hybrid capital deals, avoid the capital markets teams at PE firms, as their job is to minimize cost of capital. Instead, build relationships directly with individual deal partners in specific industries. This allows you to become a trusted, go-to provider for complex, time-sensitive situations where speed and certainty are valued over price.

Over 80% of TA's investments are proprietary deals with founders who aren't actively selling. Their strategy focuses on convincing profitable, growing businesses to partner to accelerate growth, framing the decision as "partner with us" versus "do nothing." This requires a long-term, relationship-based sourcing model.

The old investment banking model of mass-emailing a deal to many potential buyers is ineffective for media assets. Selling a media company now requires a custom, hands-on process targeting a handful of highly specific, strategic buyers, as the universe of potential acquirers has shrunk and their needs have changed.

In today's crowded market, the key PE differentiator is no longer financial engineering but the ability to identify and cultivate relationships with target companies months or years before a sale process. This provides the necessary time for deep diligence and strategic planning.

A key differentiator for scaled asset managers is moving beyond reactive deal flow. They leverage firm-wide thematic research to proactively identify companies and pitch them customized financing solutions, effectively manufacturing their own proprietary opportunities.

TA's extensive deal sourcing operation, which contacts 40,000 businesses annually, isn't just for new platform investments. The firm systematically identifies smaller companies within this funnel that are perfect add-on acquisitions for its existing portfolio companies, creating a proprietary M&A pipeline that has resulted in over 1,500 deals.

A HoldCo leader with founder experience has an 'unfair advantage' in sourcing proprietary deals. Direct outreach from one founder to another builds a level of trust and rapport that purely financial buyers or junior associates cannot easily replicate.

Don't treat your M&A strategy as a state secret. Proactively sharing a detailed deck with bankers and trusted advisors multiplies your sourcing capabilities. This transparency ensures the inbound opportunities you receive are better aligned with your strategic priorities.