The Mindset of Successful Deal Finders

In the world of business acquisitions, how you think matters as much as what you do. Here's how to develop the mindset that successful deal-finders use to discover hidden opportunities.

This week’s newsletter is from Ross Tomkins:

When I first started looking for businesses to acquire, I made a critical mistake that I see repeated constantly: I tried to do everything at once.

I was sending LinkedIn messages, attending networking events, talking to brokers, sending direct mail, and cold calling all while trying to run my existing business.

The result? Burnout and mediocre results across the board.

The 70/20/10 Rule: Focus Where It Matters

After several frustrating months, I developed what I now call the 70/20/10 rule for focus. This simple framework transformed not just my acquisition strategy, but my entire approach to business.

Here's how it works:

70% of your time should be spent on your core revenue-generating activities, the things that move the needle right now. For an acquisition entrepreneur, this is your primary deal-sourcing strategy and managing your existing portfolio.

20% of your time goes to your next big thing—the strategy or opportunity that has significant potential but isn't your main focus yet.

10% of your time is for experimentation—trying new approaches that might not work, but could open unexpected doors.

— In my case, 70% of my focus goes to LinkedIn Sales Navigator outreach, nurturing my professional advisor network, and attending to our portfolio of businesses

— 20% is developing our direct mail campaign system

— And 10% includes podcast appearances and speaking at industry events

The beauty of this approach is that it prevents the scattered focus that kills most acquisition efforts. It gives you permission to concentrate on what's working while still exploring new opportunities.

To implement this effectively:

• Block specific times on your calendar for each category

• Track how you're actually spending your time for two weeks

• Eliminate unnecessary activities before delegating them

• Batch similar tasks for maximum efficiency

• Review and adjust your categories quarterly

Building Your Acquisition Identity

When business owners consider selling, they're entrusting their life's work to the buyer.

Who would you trust with your legacy: (1) Someone with a generic Gmail address and no professional online presence, or (2) someone with a professional email, a well-crafted LinkedIn profile, and a clear acquisition strategy?

Your professional appearance isn't about pretending to be something you're not — it's about demonstrating that you take this process as seriously as the seller does.

The non-negotiable elements of a professional acquisition identity include:

1. A professional email address with your own domain

2. A complete LinkedIn profile positioning you as an acquisition entrepreneur

3. A professional headshot

4. Consistent branding across all platforms

5. A basic website that adds legitimacy to your outreach

I learned this lesson the hard way. When I created a dedicated acquisition brand with its own domain, email, and LinkedIn presence, my response rates more than doubled compared to using my existing business email.

The 11 Touch Points to Trust

Google developed a concept called the Zero Moment of Truth (ZMOT) to describe how consumers make purchasing decisions. I've adapted this for acquisition entrepreneurship, and it's transformed how I approach seller relationships.

The Zero Moment of Truth in acquisitions is the point at which a business owner feels comfortable enough to seriously consider selling to you. Research shows that it takes an average of 11 touchpoints across 5 different mediums to reach this moment.

This explains why many acquisition efforts fail. Most buyers give up after 2-3 touchpoints, long before the seller reaches their Zero Moment of Truth.

The 5 key mediums include LinkedIn, email, phone conversations, in-person meetings, and other digital touch points like website visits. Each interaction builds trust incrementally, creating a foundation for a potential transaction.

Building Credibility Without a Track Record

"How do I build credibility when I haven't done any deals yet?" This is the classic catch-22 of acquisition entrepreneurship, you need deals to build credibility, but you need credibility to get deals.

When I acquired my first business, I had zero acquisition experience. What I did have was deep knowledge of the healthcare services industry and experience building my own successful practice.

The key insight was focusing on industry-specific credibility rather than acquisition-specific credibility. When approaching physiotherapy practice owners, I emphasized my clinical experience, the growth of my own practice, and my understanding of the unique challenges in running a therapy practice.

This industry-specific credibility was far more valuable to sellers than generic acquisition experience. They cared more about whether I understood their business than whether I had bought other businesses before.

For my first acquisition, Balmoral Physiotherapy, what ultimately won the owners' trust wasn't fancy credentials or a high offer price; it was demonstrating that I understood and respected what they had built & had a credible plan to preserve and enhance it.

They agreed to sell with 100% seller financing, an arrangement that would have been unthinkable with a buyer they didn't trust.

Key Principles for Building Trust

From this experience and many subsequent deals, I've distilled these principles for building credibility:

1. Lead with industry knowledge, not acquisition expertise. Sellers care more about whether you understand their specific business.

2. Be transparent about your situation. Authenticity builds more trust than posturing.

3. Create detailed, thoughtful plans for how you would operate and grow their specific business.

4. Leverage warm introductions whenever possible to bypass months of credibility-building.

5. Focus on the seller's goals beyond price. Understanding their non-financial concerns demonstrates a level of care that purely financial buyers rarely show.

Mindset Matters More Than Methods

In acquisition entrepreneurship, your mindset comes first — before your methods. The specific tactics — LinkedIn outreach, professional networking, direct mail campaigns — are all valuable tools… but without the right mindset, even the best tactics will fall flat.

The sellers you'll be approaching have often spent decades building their businesses. They can quickly sense whether you're a serious, credible buyer — or just another tire-kicker.

Are you approaching this as a get-rich-quick scheme, or as a professional business builder? Are you focused on what you can get, or on the value you can create for sellers, employees, and customers?

Your answer to these questions will determine your success in finding off-market deals long before any tactic or technique comes into play.

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