3M+
Owner-managed SMEs
The DACH middle-market universe
60%
Research share
Typical senior capacity in PE funds
1–2×
Lower multiples
Proprietary vs. auction deals
Market context
Four structural barriers in DACH sourcing — and how research resolves them.
Private equity, corporate M&A and family offices operate in a fragmented, opaque DACH market. The four recurring bottlenecks — and what a systematic research methodology changes about them.
Challenge
Overpriced auction processes
Structured auctions run by M&A advisors systematically drive multiples up. Bidding competition, compressed timelines and little negotiating room erode the entry valuation.
Answer
Proprietary access before the process
Sector mapping and direct approach identify targets before a banker is engaged. Exclusive conversations instead of bidder rounds — and, with them, realistic EBITDA multiples.
Challenge
Research ties up senior capacity
Up to 60% of the investment team's time goes into database research, longlist maintenance and first contact. Resources that would be far more valuable in deal-lead management.
Answer
External research as a capacity lever
Systematic sector analyses and qualified longlists are outsourced. Senior capacity concentrates on qualification, negotiation and execution.
Challenge
A fragmented DACH middle market
Over 3 million SMEs, no central database, strong regional differences. International funds lack the local network to reliably reach owner-managed companies.
Answer
Local methodology with data depth
A sector-specific methodology combines the commercial register, secondary sources and direct approach in German. Succession signals, ownership situation and strategic fit are checked before the introduction.
Challenge
An in-house sourcing stack ties up capital
Databases, crawlers, enrichment, a proprietary sourcing CRM and the ongoing maintenance quickly add up to a six- to seven-figure sum per year — on top of the senior capacity the build-out consumes.
Answer
Externalisation instead of a fixed-cost block
We provide the complete sourcing apparatus as a mandate: variable cost instead of a capital budget, ready to deploy, without building an internal platform.
Read on: What is deal origination? · Proprietary deal flow · Deal origination in DACH
Focus sectors in the DACH middle market
Our sector expertise focuses on fragmented industries with high consolidation potential and attractive succession dynamics.
Industrial Services
Maintenance, servicing and technical industrial services.
Read sector analysis
IT & Managed Services
IT outsourcing, cloud migration, managed IT.
Read sector analysis
Healthcare & Medtech
Medical devices, care services, laboratory technology.
Read sector analysis
Facility Management
Building management, cleaning, catering.
Read sector analysis
Building Technology & Fire Safety
Building services engineering, fire protection, security technology.
Read sector analysis
Environmental & Waste Services
Waste management, recycling, environmental services.
Read sector analysisFive steps to proprietary deal flow
Our structured process ensures that each phase builds methodically on the previous one — from investment thesis to qualified handover.
- 1
Investment Thesis
Together we define your search profile: target sectors, company sizes, geographic focus, add-on criteria and strategic rationale. This creates a precise requirements profile as the foundation for the search.
- 2
Sector Analysis
We analyse the relevant sectors for consolidation potential, degree of fragmentation and growth trends. The result: a prioritised list of attractive sub-segments with the highest probability of success.
- 3
Market Mapping
Systematic identification of all relevant targets within the defined search field. We create a comprehensive market map with detailed company profiles and valuation estimates.
- 4
Qualified Outreach
Discreet approach to shareholders and managing directors. We assess transaction readiness, strategic fit and timing — always maintaining absolute confidentiality.
- 5
Deal Introduction
Qualified handover of the opportunity with all relevant information: company profile, financial metrics, ownership situation and an assessment of the transaction dynamics.
Methodology
Proprietary deals for private equity — your advantage
Deal origination — M&A deal sourcing in the Anglo-Saxon market — is the proactive identification and approach of acquisition targets outside of structured auction processes. For PE funds that means: no bidding war, longer due-diligence windows and a realistic room for negotiation over EBITDA multiples, earn-outs and management rollover.
“Studies show: in the DACH middle market, proprietary deals achieve on average 1–2× lower EBITDA multiples than comparable targets in competitive auctions.”
Access is created by combining sector-specific research, succession signals and a direct approach in German — often months before the owner even considers a sale process. And the approach is made by no call-centre and no sales agent, but by us personally — at eye level with the owner. Read on: Building proprietary deal flow · Private equity deal flow in detail.
Our services
How we source for your focus
Four building blocks — from the full buy-side mandate to the targeted add-on pipeline for platform investors.
Frequently asked questions about M&A deal sourcing
What is the difference between deal origination and M&A deal sourcing?
In substance, none. Deal origination and M&A deal sourcing describe the same discipline: the systematic, proactive identification and approach of acquisition targets outside of structured auction processes. In the private equity world, deal origination is the more established term, while M&A deal sourcing is used more often in the Anglo-Saxon market. SourcingClub runs both as one service: proprietary off-market deal flow for the DACH middle market.
How do I find proprietary deals for private equity in DACH?
Proprietary deals for private equity arise from the systematic direct approach of owner-managers outside of public sale processes. SourcingClub uses data-driven market analysis and local networks to identify owner-operated SMEs that match your investment profile — discreetly and exclusively.
What does deal origination cost for PE funds?
Costs depend on the scope of the mandate: search profile, number of target sectors and the desired market coverage. Typical models combine a monthly retainer for the ongoing search with a success fee upon transaction. We provide a tailored proposal based on your specific requirements.
Which sectors offer the best deal flow for PE in DACH?
In the DACH region, fragmented industries such as industrial services, IT services, healthcare and facility management offer the most attractive deal flow. These sectors are characterised by strong succession dynamics, stable cash flows and significant consolidation potential — ideal for buy-and-build strategies.
How does M&A deal sourcing differ from a classic M&A advisor?
A classic M&A advisor usually guides a sale process on the owner's side and runs structured auctions. M&A deal sourcing works on the buy-side and before the process: the goal is exclusive, proprietary access to the owner before a mandate or a bidding contest emerges — and, with it, a more realistic room for negotiation over valuation, earn-outs and management rollover.
Build proprietary deal flow in DACH
A first conversation is confidential and non-binding. We tell you honestly whether and how we can source for your investment focus.