Even the most successful dealmakers know that directly sourcing deals, refining investment theses, and researching inbound opportunities can be tedious, time-consuming, and altogether painful. With little to no data about non-transacted companies readily available, firms have to sift through the internet for precious ounces of information to guide their sourcing efforts.
LFM Capital was no exception. Sourcing deals that aligned with their target market and thesis criteria was such a meticulous and time-intensive process that the firm hired up to 10 college interns each semester to do the job. “We would do things like download a list of 100,000 companies from Hoovers and have our interns go through it NAICS code by NAICS code,” says Jessica Ginsberg, LFM’s Director of Business Development.
So how did LFM go from manually combing through conference lists for hidden gems to increasing directly sourced opportunities by 200% — all while improving productivity by 2.5x?