Are industry conferences worth it for proprietary deal sourcing?

Industry conferences can be highly effective for proprietary deal sourcing if approached strategically. Based on the most helpful WSO content, here are some insights:

1. Value of Conferences for Deal Sourcing:

   • Conferences can be a goldmine for networking and building relationships with business owners and decision-makers. Many live deals have been traced back to connections made at such events.
   • They provide a concentrated environment where you can meet startups, investors, and executives relevant to your target industries.

2. Maximizing Conference ROI:

   • Preparation is Key: Research the attendee list beforehand. Shortlist startups, owners, or executives aligned with your fund's strategy. This avoids wasting time navigating the event aimlessly.
   • Pre-Event Outreach: Reaching out to organizers to understand the attendee mix and arranging meetings in advance is a smart move. Setting up private breakfasts, lunches, or off-site meetings can help you stand out and foster deeper connections.
   • Focus on Relevant Interactions: Skip the flashy sessions or celebrity panels and prioritize one-on-one conversations with potential targets or partners.

3. Direct Outreach vs. Conferences:

   • Direct outreach (e.g., LinkedIn, email) is effective for volume and probability, especially when casting a wide net. However, conferences offer a unique opportunity to build rapport and trust in person, which can be critical for proprietary deal flow.
   • A hybrid approach often works best: use conferences to establish initial relationships and direct outreach to maintain and deepen those connections.

4. Challenges and Tips:

   • Conferences can be overwhelming, so prioritize efficiency. For example, at large events like CES, plan your schedule to avoid wasting time moving between halls.
   • Follow up diligently after the event, as most people won’t initiate contact even if they express interest.

In summary, industry conferences can lead to meaningful owner relationships and acquisition opportunities if you prepare thoroughly, focus on relevant interactions, and combine them with direct outreach efforts.

Sources: Your best sourcing tips, Making the most out of conferences (professional and student), (Mis)adventures in PE fundraising (part 2), Corp Dev / Strategy Role - No Deal Flow?