Written By: Gerald O’Dwyer the PE Guru
Before you begin making phone calls, it’s crucial to tailor each call to the specific industry or person you intend to contact. For instance, when reaching out to hospitals and school boards, keep in mind that these industries have different preferences. Hospitals and Health Care providers are usually swamped, so keep your calls brief and efficient, focusing on key points from your script. Schedule longer calls when they have availability. On the other hand, in the school industry, people might have more time to engage and ask questions. In any case, exude confidence and friendliness, treating the person on the other end as your equal.
Here are some guidelines to follow when making calls:
- Create a working company name, such as “Healthy Foods Ecosystem” or any inspiring name you prefer. State your name and the company name when you call. Alternatively, you can mention that you are backed by “Blackmore Partners.”
- Call each target at least twice a week to increase your chances of getting a callback. After speaking with a potential seller, follow up once a month by email and phone to see if there have been any changes that might lead to a sale.
- Request the email address of the executive you are calling, as it’s often easier for busy executives to schedule and respond to communications via email.
- Be prepared to leave 5-11 messages to get a callback. Persistence is key.
- Expect that 99.9% of recipients may say no initially. After a rejection, continue reaching out once per month through voicemail, email, and letters. You can set up Google alerts for key executives, the company’s name, and relevant industry keywords.
Here’s an example of a script for your first call:
“Hello [Recipient’s Name],
I am [Your Name] calling from Healthy Foods Ecosystem (or Blackmore Partners). My direct number is 716-748-7572. My company, Ecosystem, is backed by Blackmore Partners, an Investment Bank/Buy-side Advisor in Private Equity. The purpose of my call today is to schedule a quick 15-minute conference call with you. I’d like to provide you more information about the industry roll-up I am putting together. Perhaps we can explore a “Joint Venture” opportunity after I secure my first platform company. When you call me back, please leave your email address so I can send you additional information about our plans and get started. Thank you.”
For subsequent calls, you can maintain a similar structure but vary the content slightly. Always remember to ask for the email address, confirm the 15-minute conference call, and mention your persistence in a light-hearted manner. If you reach the potential seller’s secretary or assistant, inquire about the best times to contact the executive and ask for their email or an extension.
Once you have scheduled a call with the seller, cover the following points during the conversation:
- Introduce yourself and your company.
- Share your deal thesis and why your company, backed by Blackmore Partners, is an attractive option.
- Establish your credibility as the person who can take their company to the next level.
- Discuss your funding goals and potential for an IRR of 30% on Equity with a 5-year hold period.
- If interested, offer to include Gerald O’Dwyer, Managing Director of Blackmore Partners, in the next call (only if the target shows interest).
Remember to maintain a friendly and professional tone throughout the calls. Good luck with your calling efforts!