Proprietary off-market deals consistently close at a meaningful discount to brokered or auctioned equivalents. The percentage savings show up in both segments. The relative discount is often even larger on Main Street, where the brokered market is noisier and competition inflates prices disproportionately.
No auction premium. With one buyer at the table instead of five, the multiple lands closer to fundamentals, typically a 1–2× turn lower on EBITDA than auctioned equivalents.
More seller flexibility on structure: larger seller notes, earnouts that favor the buyer, less reps-and-warranties pushback, smoother diligence, faster close. Lower effective cost and risk beyond the headline price.
Bankers are paid to maximize seller proceeds. Auctions inflate multiples by design. Proprietary conversations bypass that machinery entirely. You negotiate with the owner, not the banker representing them.
Typical LMM multiples land in the 4–8× EBITDA range depending on quality, industry, and size. Quality assets in auctions push to the upper end of that range. Proprietary deals land in the middle.
14–21% lower purchase price on a $5M EBITDA deal, and that's before counting the value of better terms (financing structure, escrow size, working-capital adjustments).
On Main Street, most transactions are still brokered through BizBuySell, local brokers, and simple listings. Competition inflates multiples on businesses that already have thinner margins and more owner-dependence, which makes the proprietary discount, in percentage terms, often larger than in the lower middle market.
20–30% lower purchase price on a $400K SDE deal. The dollar savings are smaller than an LMM deal, but the percentage discount is often larger. Main Street has thinner margins, more owner-dependence, and higher perceived risk that auctions inflate disproportionately.
Critical with SBA loans dominating Main Street. Less professionalized sellers, smoother negotiations, larger seller notes available.
Owner-run books often have more add-backs and EBITDA adjustments available. Proprietary conversations surface those before pricing locks in.
Our M&A analyst phone-screens every responding owner. That's critical on Main Street, where deal quality varies widely and SBA contingencies matter.
Our retainer credits dollar-for-dollar against the consulting fee at close. The retainer pre-pays the close fee instead of stacking on top of it. The biggest savings, though, are on the deals themselves. One win at a 1× lower multiple easily dwarfs a year of retainers.
| Approach | Typical annual cost | What you get |
|---|---|---|
| In-house sourcing analyst + databases | $100K – $300K+ | Variable hit rate. Salary + tools + opportunity cost. Often broker-database leaning. |
| Traditional buy-side advisor (% of EV) | $100K – $600K+ at close (0.5–2% of EV on $20–30M) | Closing fees can stack on top of retainers, no methodology guarantee. |
| Traditional Main Street broker (% success fee) | 5–10% of purchase price on closed deal | Listed exposure. No proprietary sourcing. Owner pays, but the pricing tension hurts the buyer. |
| Aligned Profit (retainer + capped flat fee) | Retainer credited 100% against close fee | Proprietary outreach, M&A-operator follow-up, 98% Coverage Guarantee. Same methodology across Main Street and LMM. Retainer scales to deal size. |
Retainers paid during the engagement accumulate against the consulting fee owed at close on any deal originated through the engagement. At close, you pay the consulting fee minus retainers already paid. If retainers exceed the fee, you owe nothing additional. Most of our compensation depends on producing a deal you actually want to do, not on running a high volume of conversations.
Saved on entry depending on deal size and multiples avoided.
Saved versus in-house teams or % of EV advisors on the same closed deal.
From kickoff to first qualified owner conversations, with sustained pipeline discipline.
We don't guarantee a deal. Too many variables (owner timing, diligence outcomes, price alignment) sit outside any sourcing firm's control. The approach works best for focused buy boxes, and results depend on your criteria, your responsiveness, and your market. There's upfront time for kickoff and universe approval. The consulting fee at close applies on deals sourced through the engagement, with a 36-month declining tail. Everything above is what we'd expect for a serious lower middle market buyer who runs the agreed search.
We'll size your target universe, model the savings on your buy box, and walk through the full fee structure on a 20-minute call. Complimentary, and you leave with the report.
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