What a serial acquirer needed from an acquisition search
Most of the buyers we work with are making their first or second acquisition. This client had already made more than a dozen.
So why would an experienced buyer bring in outside help? And what changed when they did?
This is the story of how one lettings group went from buying when the opportunity arose to running a planned acquisition programme across three regions.
At a glance
Client: a lettings and property management group with more than a dozen acquisitions behind it
Brief: lettings-only acquisitions, either whole businesses or lettings books
Outreach: 260 approved targets, 158 owner responses (62%) and 12 offers
Expansion: a feasibility study and a 12-criteria comparison to choose a third region
Results: around 700 managed properties added, with a further 800 due to complete
Who our client is
Two founders started the business to manage their own property portfolio. They grew it into a well-established lettings agency, then opened a second hub in another city.
Much of that growth came through acquisition. Before we met, they had completed more than a dozen deals, ranging from small lettings books to whole businesses.
Why they brought us in
We first came across them through a press article announcing their latest acquisition, in which they said they were keen to do more. We got in touch.
They had a clear goal: grow the business to a strong position for a future exit. They had done the groundwork over the previous decade. Now they wanted to speed up.
The problem wasn't knowing how to buy. It was time. The founders were running a growing business and every deal themselves. Conversations with sellers went quiet. Offers were left waiting for an answer. Outreach happened in bursts, when the diary allowed.
The owners had become the bottleneck.
A lettings-only buyer
Our client only wants lettings and property management. It isn't interested in sales.
That narrows the field. A whole-business purchase only works where the target is all lettings. Where an agency also does sales, the deal has to be a purchase of the lettings book alone, which many owners are reluctant to agree to and which is harder to land.
Mapping two markets
We started by mapping every agency in our client's two cities. In total, 260 targets were approved for approach.
We approached them by letter, email, phone and LinkedIn, and kept following up. 158 owners responded, a 62% response rate.
That put our client's name in front of more than half the agencies in both markets. It also produced an opportunity to make 10 offers.
Completed deals so far range from around 90 to 300 managed properties. We also advised on a further deal that was already in progress when we started. More are in negotiation in both cities.
Just as important, every warm lead is now followed up on a schedule. Owners who said "not yet" get a call when they said they would. Several have told us they'll be ready in the next one to three years.
The bigger question: are two cities enough?
After a year, the founders asked us to look at the whole plan. Could their two cities alone get them to their target within the timeframe?
We carried out a feasibility study, built on the target data we already had for both markets. The answer was yes, but on the current pace it was closer to a five-year effort than a three-year one. A third region wouldn't change the destination. It would make the timeline realistic.
We then compared three candidate cities against 12 criteria. These ranged from fee levels and staff costs to regulation, competition from consolidators, and exit multiples.
The region our client chose didn't score highest on paper. But it had something the others didn't: a platform acquisition already on the table. A platform of that size typically takes 12 to 15 months to find and close.
The third-region search
We mapped hundreds of agencies in the new region and shortlisted 8 that could work as a platform acquisition, a business large enough to arrive with its own team.
We've negotiated one of those, a business with several hundred managed properties. After a lot of back and forth, it's due to be agreed in November.
The results
Since working with us, our client has added around 700 managed properties. A further 800 are due to complete over the next six months across all three regions.
Two lessons for experienced buyers
1. You can become the bottleneck. Knowing how to buy isn't the hard part for a serial acquirer. Finding the time is. Outreach that happens in bursts produces deals in bursts. A steady, managed pipeline, with every warm lead followed up, produces them consistently.
2. Know what your patch can deliver. A feasibility study tells you whether your goals are achievable where you already operate, or whether you'll need to expand. Finding that out at the start saves a year of chasing a target your market can't support.
Frequently asked questions
Why would an experienced acquirer use a buy-side adviser?
For most serial acquirers the constraint is time, not know-how. When the owners run the business and every deal themselves, outreach happens in bursts and warm leads go cold. A buy-side adviser keeps the pipeline moving so the owners can focus on integration and growth. An external adviser who works across the UK with other leading agencies can make recommendations on structures and negotiations based on past experiences. You don't know what you don't know.
Can you buy just the lettings book from an agency that also does sales?
Yes, but it is harder to land than a whole-business purchase. Many owners are reluctant to split their business, so lettings-only buyers should expect a narrower field and longer conversations. However, in some cases this is exactly what the seller is looking for.
What response rate can a buy-side outreach campaign achieve?
It depends on the market and the approach. In this mandate 158 of 260 approved targets responded, a 62% response rate, using letter, email, phone and LinkedIn with consistent follow-up. We explain how target lists are built in what actually happens in the first two weeks of a buy-side acquisition mandate.
What is a platform acquisition?
A business large enough to arrive with its own team and leadership. It gives a buyer an operating base in a new region that smaller deals can then be added to. Finding and closing one typically takes 12 to 15 months.
How do you choose a new region to expand into by acquisition?
Start with a feasibility study of whether your existing markets can deliver your target in your timeframe. Then compare candidate areas on factors such as fee levels, staff costs, regulation, competition from consolidators and exit multiples. Practical factors, such as a platform deal already available or proximity to your senior team, can outweigh the scores on paper.
Contact
If you're an independent agent who has already made acquisitions and wants to do more, we're always happy to talk through what a search could look like in your area.
T: 02920 025 852
