Marketing Psychology for Deal Flow - How to Persuade Anyone

Most acquisition entrepreneurs approach deal sourcing like they're throwing spaghetti at the wall - sending out dozens of boring LinkedIn messages and emails - and hoping something sticks.

Here's the truth: 90% of outreach is being ignored because it speaks only to the logical brain while completely missing the emotional triggers that actually drive decisions.

Our own Michael McGovern recently presented on this topic of marketing psychology for our M&A community. What he shared will fundamentally change how you think about written communication in your social media posts, emails, direct messages, and website when sourcing deal flow:

FIRST, THE PERSUASION MINDSET MISTAKE

Before we dive into the tactics, let's address something important - When someone hears the word "persuasion," they might negatively think about "manipulation," but here's a quote that perfectly captures why this is the wrong way to frame it:

“Every business that puts up a website is engaging in psychological manipulation... That’s not a question; that’s what the thing does. The only question is whether yours is going to be any good at it, or not.” - Dan Kennedy

You're either going to influence people skillfully and consciously with good intent, or you're going to do it poorly. The choice is yours.

Doing it the right way begins with discovering something about the brain that determines whether anyone will even read your message in the first place.

THE SYSTEM IN THE BRAIN THAT CONTROLS ATTENTION

Understanding how the human brain processes information is crucial for communication. Michael highlights insights from Oren Klaff's book "Pitch Anything" where we see how the brain makes decisions via its 3-part structure:

1. The “Crocodile” Brain (Attention) - This primitive/ survival part of our brain asks 3 core questions when it encounters information:

• Is this a potential benefit (not a threat)?

• Is this something new & interesting (or can ignore because I’ve heard it before)?

• Is simple enough to process fast (or is it too complicated)?

If your outreach fails any of these tests, it gets immediately filtered to “trash.”

This is why generic messages like "How’s business?" get ignored - because they're not interesting enough to capture attention (We’ll cover ways to capture attention below).

2. The Mid-Brain (Credibility) - Once you have attention, the social brain evaluates credibility. This is where your status, track record, and authority come into play.

But here's the key insight: credibility doesn't just come from your background - it comes from how well you understand and articulate your prospects’ specific problems.

3. The Neocortex (Logic) - After passing the first 2 parts of the brain, the logical brain responsible for abstract thinking can actually process your pitch. This is where rational things like deal terms & financing structures start to get considered.

Most start pitching to the logical neocortex - instead of finishing there - and wonder why they're not getting responses.

THE 9 RESEARCH QUESTIONS THAT CHANGE EVERYTHING

Now, before writing a single word, successful persuasion first begins with answering 9 critical questions for your market research and brand story:

1. Who is your ideal business owner or deal partner?

2. What bad solutions are your prospects currently turning to?

3. What are their top 3 fears, frustrations, and worries about selling their business?

4. What does their dream outcome look like?

5. What new trends are affecting their lives right now?

6. What are the most common objections you’ll hear from them (and how do you get over them)?

7. What's the story of why you started acquiring companies?

8. What are the top benefits people get from working with you?

9. What's your unique value proposition (something you do uniquely better than anyone else)?

This research gives you a foundation to demonstrate expertise & deep understanding so that your prospects think: "This person really ‘gets it.’"

This is important because people don't make a deal when they understand YOU; they make a deal when you make THEM feel understood.

THE 7 TYPES OF SOCIAL MEDIA POSTS THAT GENERATE CONVERSATION

Once your research is done, it’s time to post content to engage your network. Instead of writing randomly, it’s better to cycle through 7 specific types of posts:

1. Educational Content - Share insights about exit planning, valuation optimization, or industry trends. For example: "4 things plumbing business owners don't consider when planning retirement."

2. Pre-Handling Objections - Address common concerns before they arise. "Most business owners think it's impossible for their company to run without them - here's why that’s wrong."

3. Social Proof - Share client success stories to build credibility.

4. Hero’s Journey - Share your personal story (even lessons learned through failure) using the classic narrative structure that Hollywood has perfected.

5. Engagement Posts - Ask relevant questions that get people to respond and engage with your content.

6. Personality Content - Show the human side of your business - like highlights from your home life or travels - to build connection and trust.

7. Direct Offers - A few times a month, make a straightforward pitch with your acquisition criteria, and end with a call-to-action, like “Comment below or message me directly to find out more”

Next, let’s talk about more “active” outreach:

OPENING LINES FOR EMAILS AND DIRECT MESSAGES

When emailing or messaging people, your opening line determines whether your message gets read or deleted. Here's how to craft subject lines and direct messages that actually work — both in direct cold outreach or if you have a warm email list:

For Direct Cold Outreach to Business Owners

Generic cold email subject lines that get ignored:

• "Business Opportunity"

• "Interested in Your Company"

• "Partnership Discussion"

Effective cold outreach subject lines are personal and relevant:

• "[Company Name]: Confidential question about the future"

• "[Business Owner First Name] - Not sure if you've considered this unusual exit option?"

• "[Mutual Contact] suggested I reach out soon"

• “Sensitive question for [Business Owner First Name]”

• “Looking for investors, [Business Owner First Name]?”

For Warm Email Lists (Broadcast Style)

Generic subject lines that kill your open rates:

• "Monthly Acquisition Update"

• "Business Opportunities This Week"

• "Deal Flow Newsletter #47"

Effective broadcast subject lines offer value:

• "Why 2024 could be the last great year to sell your business"

• "The SBA loan loophole closing next month"

• "7-figure exit in 90 days (here's the playbook)"

• "Your business valuation just changed (new tax rules)"

As you can see from the examples above, a good rule of thumb for any opening line is to (1) build curiosity, and (2) hint at a benefit or risk.

The Structure That Works for Both

After grabbing attention with a hook, follow this proven pattern for the body of the message (works for both cold and warm):

1. Credibility: Quickly establish why they should listen

2. Value: What's in it for them

3. Soft CTA: Easy next step that doesn't feel pushy

Broadcast Example: "I haven't shared this story before..." (hook) + "but after 13 acquisitions..." (credibility) + "I learned something that could save you years of frustration..." (value) + "Have you faced something like this? Hit reply to let me know" (soft CTA)

Cold Outreach Example: "I noticed [Company Name] has been doing well..." (hook) + "As someone who specializes in [Industry] acquisitions..." (credibility) + "I wanted to invite you to a private conversation about potential investment, partnership, or acquisition..." (value) + "Worth a quick call?" (soft CTA)

TIP: Once you find something that resonates, you can also re-purpose your messaging for other campaigns, like social media ads or post-mail letters.

WEBSITE PSYCHOLOGY THAT CONVERTS

Your website needs to answer 1 question within seconds: "What's in this for me?"

Your site should put the spotlight on your prospects’ benefits and outcomes; not only on yourself and your own track record.

Above the fold (before anyone has to scroll), you need:

• A clear benefit-focused headline

• Your credibility indicators

• A way to get in touch

• Visual elements that build trust, like your headshot

7 ELEMENTS OF PERSUASIVE SALES WRITING

“Okay this all sounds great, but when I go to write, I end up staring at a blank page.”

Michael notes that Kyle Milligan’s book “Take Their Money” shows us persuasive writing doesn’t have to be difficult or require templates. When making any pitch, the reader should understand the opportunity has some (or all) of these elements:

• New: A fresh opportunity or approach that offers hope

• Easy: Simple to understand and implement

• Safe: Low risk or guaranteed outcomes

• Big: Significant potential impact or payout

• Fast: Quick results or implementation

• Predictable: Reliable, proven process

• Only: Exclusive or limited availability

Weave these persuasive principles into your communication and you’ll be ahead of most.

PUTTING IT ALL TOGETHER

The most successful acquisition entrepreneurs understand that outreach for deal flow is both an art and a science. They use psychological principles to craft messages that:

1. Grab attention by addressing new, relevant problems

2. Build credibility through deep understanding and social proof

3. Present logical arguments only after an emotional connection has been made

4. Include clear, specific calls to action

5. Follow up systematically with different angles and approaches

YOUR NEXT STEPS

Start implementing these principles immediately:

1. Research your target audience using the 9 questions above

2. Audit your current outreach messages for psychological triggers

3. Test different subject lines and opening hooks

4. Create a content calendar cycling through the 7 message types

5. Track your response rates and optimize based on data

Remember - Deals are often won or lost in the first few seconds someone encounters your message…

So, make those seconds count!

Thanks for reading Acquiring & Exiting.

Today’s newsletter was inspired by investor & marketing expert, Michael McGovern, and his presentation to our community. To get in touch with him - or to hear more about marketing and persuasion in M&A - Subscribe to his email newsletter “The Wildman Path” HERE.

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