Build a deal pipeline that produces decisions

What it means

A deal pipeline is a record of opportunities moving from initial identification to a decision. Some will advance to seller discussions, financial review and an offer; others will be rejected or revisited. Sey describes sourcing through direct outreach, sell-side brokers, buy-side advisers and personal relationships. He also describes a shift from personally conducting searches to involving brokers and group managers as his businesses developed. Watch source

Why it matters

Searching produces learning as well as possible transactions. Seller conversations help a buyer understand expectations, owner roles and financing obstacles. Sey distinguishes an experienced buyer’s quick rejection of poor fits from a novice’s need to gain useful conversation experience. That distinction supports a purposeful pipeline: learn what matters, record it and improve the next decision. Watch source

A broker’s opportunity list is only the starting point. In the source account, sell-side brokers also screen buyers because a failed or implausible buyer can damage the process. Being credible means explaining your acquisition approach and what evidence you can provide, not claiming you already possess money that remains conditional. Watch source

How it works

Keep target records separate from lender and investor relationships. Sey suggests different stages for each, with a long-term category for institutions whose answer is effectively wrong deal or wrong stage. A lender declining one transaction may still be relevant to another. Combining every contact into one undifferentiated list loses that context. Watch source

For targets, qualify the seller’s willingness to transact and discuss economic expectations before drafting an offer. His account contrasts large numbers of weakly qualified opportunities with fewer conversations where both sides already understand the proposed terms. The lesson is about qualification quality, not a promised conversion rate. Watch source

Practical interpretation

Use a simple record with target, source, reason for fit, seller motivation, missing information and next action. After a call, write what changed. Did you learn that the owner wants to retire, that a manager must be replaced, or that the asking price depends on a recent earnings spike? This editorial routine puts the source’s conversation-first approach into a repeatable format. Watch source

Set a sustainable cadence for research and outreach. Sey offers an example of dedicated weekday search time using company databases and a contact-management tool. The exact hours and software are his preferences. The transferable point is to allocate recurring time and leave a clear next action for each live opportunity. Watch source

A worked example

Hypothetical pipeline review. A buyer has twelve targets:

Four lack financial information: request the missing records before deciding whether to advance.
Three sellers are not ready to sell: record an appropriate future follow-up.
Two fail the buyer’s operating criteria: record the reason for rejection.
Three merit a second conversation: arrange those discussions and identify the questions to resolve.

Each category needs a different next action. Sending twelve identical letters of intent would not create twelve qualified deals. This example applies Sey’s advice to qualify economics and seller willingness before an offer. Watch source

Common mistakes

Do not confuse a sell-side broker, a retained buy-side search adviser and a debt broker. Their roles, incentives and possible fee arrangements differ. Sey discourages novices from spending their personal search runway on retained buy-side advice, while his own later approach uses such advisers. That is a stage-specific preference, not evidence that all retainers are bad. Watch source Watch source

Also resist treating his unsourced percentages for businesses on and off market as a reliable market census. You can understand why direct owner outreach matters without relying on those numbers. Watch source

Broking explains counterparties and incentives. Target selection gives the pipeline its criteria; letters of intent mark a more concrete stage than an introductory conversation.

Further viewing

Watch the practical sourcing and qualification discussions first. Read the proposed routines as ways to organize work, and the reported deal volumes as personal accounts rather than guaranteed funnel economics.