SMB Acquisition Hub

How Independent Buyers Can Win Deals Over Private Equity

Written by Patrick OConnell | (May / 2025)

Independent buyers are entering the business acquisition space with a clear disadvantage in capital, but they are winning deals by using other tools. Competing with large private equity firms and strategic acquirers is possible when solo buyers lean into speed, trust, and likability.

Why Solo Buyers Are Winning

The competition between independent buyers and larger firms is like David versus Goliath. Solo buyers lack capital, but they can substitute speed and surprise for strength. Strategic advantages like responsiveness and relatability can make all the difference in deal success.

Establish a Clear Framework

Creating a business buy box helps buyers focus their efforts. Knowing what kind of business you want to purchase helps filter opportunities and manage expectations.

  • Define your criteria early

  • Set a clear capital threshold

  • Focus only on what fits your profile

Provide Proof of Capital

Being taken seriously in small business acquisitions requires more than intent—it demands clear, upfront proof of capital. Sellers and advisors want to know that you have the means to close a deal before they engage in a time-consuming process.

  • Prepare your financial documents

  • Communicate your funding capability

  • Avoid deals outside your realistic range

Competing on Intangibles, Not Price

Most independent buyers can’t outbid a private equity firm. What they can do is build stronger relationships with sellers. Sellers frequently prioritize continuity, employee wellbeing, and cultural alignment over maximized valuations.

  • Build personal rapport

  • Understand their goals and motivations

  • Show commitment to their legacy

Speed as a Competitive Advantage

In the fast-moving world of business acquisitions, speed matters. Large firms are often bogged down by committees and slow decision-making. Independent buyers, on the other hand, can move quickly.

  • Respond to emails promptly

  • Be available for weekend or after-hours calls

  • Follow up fast and consistently

Build a Polished Buyer Profile

Independent sponsors need to look as professional and capable as any institutional buyer. Presentation matters.

  • Build a clean, branded website

  • Use a matching professional email

  • Create a one-pager highlighting your value and background

Focus on Relationships with Brokers and Sellers

Relationships drive deal flow. Independent buyers should proactively build relationships with business brokers and sellers—long before a deal is on the table.

  • Stay in touch with brokers

  • Offer to meet without expectations

  • Provide value before asking for a deal

Go Off-Market and Start Local

Targeting off-market businesses is one of the most powerful strategies for solo buyers. By engaging business owners before they list their companies, you bypass competitive auctions and gain leverage.

  • Explore your local community

  • Reach out to businesses directly

  • Let your network know you're looking

Know Your Industry: Niche Down

Buyers who can speak the seller’s language build trust faster. Demonstrating a working knowledge of the industry reassures sellers that their business will be in capable hands.

  • Learn industry-specific terminology

  • Research operational pain points

  • Focus on sectors where you add value

Understand Seller Motivations

Not every seller wants the highest price. Many are looking for a buyer who will preserve their legacy, take care of their employees, and continue growing what they built.

  • Ask what matters most to them

  • Be honest and straightforward

  • Align your offer with their expectations

Watch the Full Webinar: How Independent Buyers Win in M&A

Want to dive deeper into these strategies and hear directly from the experts?

In this recorded webinar, Patrick O’Connell (Managing Director at O'Connell Advisory Group) and Ben Hofer (Founder of DealMemo) share real-world tactics, examples, and frameworks that independent buyers are using today to beat private equity and win deals.

Navigate Uncertainty and Seize the Opportunity

Today’s market is filled with uncertainty—tariffs, policy shifts, and economic fluctuations are creating hesitation among large buyers. That’s your opportunity.

  • More sellers are entering the market

  • Larger firms are sitting on the sidelines

  • Less competition means better deals for solo buyers

Follow the Acquisition Timeline

Once you have a signed LOI, the process typically takes 60 to 120 days. Be prepared for financial diligence, bank underwriting, and legal reviews.

  • Stay organized

  • Be responsive

  • Keep the process moving

Further Reading

To dive deeper into the strategies and insights shared in this blog, here are some highly recommended resources from trusted industry sources:

  1. Corporate Finance Institute – Independent Sponsor Overview
    A comprehensive look at how independent sponsors operate and compete in the acquisition space without committed capital.

  2. Private Market Labs – Owner-Operator vs. Independent Sponsor
    A detailed comparison between two common paths in small business buying and how they shape acquisition strategy.

  3. First Page Sage – Selling to Private Equity vs. Strategic Buyers
    Understand the unique priorities and approaches of private equity and strategic buyers, and how solo buyers can use that insight to position themselves.

  4. DealRoom – 7 Types of Successful Business Acquisition Strategies
    Explore proven acquisition strategies that can lead to business growth and competitive advantage.

Final Thoughts

Independent buyers have more leverage than they realize. With the right preparation, communication, and mindset, they can beat private equity firms at their own game.

  • Be likable, responsive, and professional

  • Know your numbers and show them

  • Build meaningful relationships

  • Be fast and thoughtful

That’s how independent buyers win.

 

Contact us today to learn how we can support your next deal.