Build an M and A target pipeline


Who this is for

Founder led lower-middle market companies with 5 to 50 million in annual revenue that want a steady flow of qualified targets.

The quick answer

Write a simple deal thesis that names the customer, the problem, and the capability or region you want. Define a target profile with size, margin, and fit. Source lists from partners, industry groups, and data tools. Score each target on fit and ease to close. Track outreach in your CRM and review the list each month.

The method in eight steps

  1. Write the deal thesis
    Name the customer you serve, the pain you will solve better after the deal, and the capability or region you want to add. Keep it on one page.

  2. Define the target profile
    Revenue band, gross margin band, segment focus, delivery model, geography, and culture markers.

  3. Build the first list
    Use supplier and partner referrals, industry groups, conference lists, and reputable data tools. Add local brokers and bankers who work at your stage.

  4. Create a two part score
    Fit score. Customer overlap, margin quality, recurring revenue, culture. Ease score. Owner readiness, cleanliness of books, simple structure, few third party consents.

  5. Set outreach rules
    Start with light touches. A short note that references your thesis and why a conversation could help both sides.

  6. Track in your CRM
    Create a lane for targets. Record source, scores, last touch, owner, and next step with a date.

  7. Review monthly
    Sort by highest combined score and by last touch. Add five fresh names and archive low fit names so your list stays crisp.

  8. Refresh the thesis twice a year
    Update capability gaps and regions based on strategy and learning from outreach.

Example

A firm with a channel gap wrote a thesis for service partners in two provinces. Using a two part score they prioritised fifteen targets and booked five owner meetings in sixty days.

Pitfalls and fixes

  • Lists with no thesis. Write the point of the pipeline.

  • Scores that are subjective. Define how to assign points in plain rules.

  • Stale names. Review monthly and archive low fit entries.

Checklist

  • One page thesis

  • Target profile

  • First list from partners and data

  • Fit and ease scorecard

  • CRM lane with owners and dates

  • Monthly pipeline review on calendar

Related links

  • Understand sector multiples

  • Run due diligence the simple way

  • Build a clean data room

Want a deal pipeline that produces real conversations. Contact Founded Partners and we will write the thesis, build the list, and set the scoring with you.