Proprietary deal flow for acquirersmandate matching & priority routing
The lower middle market is where proprietary sourcing still wins: fragmented ownership, uneven information, and sale processes that often begin with a trusted advisor—not a widely marketed auction book. Unity concentrates origination in the roughly $1M–$50M EBITDA corridor for private equity, family offices, independent sponsors, and strategic acquirers who prefer mandate-led introductions before a process is marketed. Written criteria keep sourcing in the band you can close—not adjacent listings that burn review time.
Below the sponsored auction market, owners still take a private call from an advisor they already trust. Information is uneven. Processes are optional. That is an advantage for a buyer who will write a mandate and wait for fit instead of refreshing listing sites.
Unity concentrates origination in the $1M–$50M EBITDA range — large enough to matter to institutional capital, small enough that proprietary channels still work. In this band you are more likely to meet a founder who has not hired a banker, a family owner weighing succession, or an operator who would sell to the right partner if the conversation stayed confidential.
Auction dynamics change above this corridor; main-street brokers dominate far below it. The lower middle market is where mandate-led origination, referral partners, and direct owner dialogue still produce a first look before a process is broadly marketed.
Industry labels vary, but Unity uses earnings, not revenue, because capital structure and buyer type follow cash flow. The corridor is broad enough to include regional platforms, add-ons to an existing holdco, and single-asset acquisitions for independent sponsors.
Most live mandates cluster between $1M and $50M EBITDA. Below that threshold, operator-led search and SBA-style transitions dominate; above it, processes look more like mid-market auctions unless origination stays private.
Multiples and leverage differ by sector, but LMM enterprise values often sit where a PE platform, a family office direct deal, or a strategic bolt-on is plausible—without requiring a syndicated auction to clear.
Fragmented service and light industrial trades remain relationship-driven in secondary and tertiary markets. A mandate should name where you will travel for management meetings—not just where you will underwrite from a spreadsheet.
Origination in this corridor is not a database subscription. It is the repeated work of matching a written thesis to owners who are willing to explore a confidential path—and routing overlapping buyer interest fairly when more than one mandate fits.
Capture earnings band, sector (NAICS or plain-language vertical), geography, and whether the first close is a platform, add-on, or single hold. Note structure preferences—asset vs stock, rollover equity, seller note appetite—so sourcing does not drift into the wrong deals.
CPAs, SBA lenders, M&A counsel, and wealth advisors in your target map hear about owners long before a teaser circulates. Unity’s referral partner network and direct outreach stay inside confidentiality norms those advisors expect.
Quality of earnings, customer concentration, management depth, and owner motivation are tested before a name reaches a buyer. Unready files stay off the desk—protecting your time and the owner’s reputation.
When interest is mutual, a short mutual NDA precedes a CIM or executive summary prepared to institutional standard—not a mass-market listing blurb. Data room access remains controlled.
When two or more qualified mandates match the same off-market opportunity, review order follows membership tier (Priority, Intelligence, Advantage, Free), then mandate fit inside a defined window—not a blast to every registered user.
A pass within the window allows the next qualified buyer to engage. A pursue moves into LOI and diligence with the same confidentiality rules. Some LMM conversations become recapitalizations or minority partnerships rather than full exits—still sourced through the same mandate.
In a marketed process, price is discovered in public. Strategic rationale becomes visible to competitors. Management attention shifts to the sale itself. Proprietary origination does not eliminate competition—it changes when you learn about the company and how many parties are invited.
Unity’s model assumes most attractive LMM assets never need a broad auction if the right buyer and owner are introduced early. Your mandate tells the desk which introductions are worth making.
Marketed listings on the Unity marketplace are labeled separately from off-market routing. LMM origination focuses on the first two paths.
This is not a marketplace feed of every small business for sale. It is mandate-matched origination where the owner understands confidentiality and the buyer understands the corridor.
Some LMM closes become a platform for roll-ups. Others are a single operating company held for cash flow. The mandate should say which—and whether add-ons in the same vertical are in scope.
Introductions are not blasted. When exclusivity applies, it is documented on that file. Passing within the review window is an explicit outcome, not silence.
The owner can articulate why they are exploring a transaction, who else must agree, and a realistic timeline. Ambiguity is resolved before buyers spend diligence dollars.
Adjustments are explained, not hidden. Customer concentration is disclosed. CapEx and working capital needs are directionally understood—not perfect, but honest enough to price.
Many LMM deals require the operator to stay through transition. The mandate should state appetite for partial rollovers and employment agreements.
Different capital forms compete for the same off-market name. Unity routes by fit first—sector, size, structure—then by membership priority when mandates overlap.
Platform and add-on theses in fragmented trades. Often the fastest to move when a file matches fund criteria and dry powder is allocated.
Direct control, long holds, and founder succession scenarios where culture and legacy matter as much as IRR.
Deal-by-deal capital with a written thesis; origination must be sharp because bandwidth is limited.
Corporate development teams buying capability, geography, or customer lists before a competitor sees the asset in a process.
See dedicated pages for PE firms, family offices, independent sponsors, and strategic acquirers.
Sourcing quality follows mandate quality. Specify sector, EBITDA range, geography, platform vs add-on intent, and structure preferences so origination stays in the lower middle market you can actually close—not adjacent deals that waste review time.
Submit criteria through the investor application or explore how off-market sourcing works before you write the thesis.
For acquirers
When several qualified buy-side mandates fit the same off-market opportunity, review order follows membership.
Not a public auction. Mandate-fit scoring still applies inside each tier.
$500/mo
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$150/mo
$0/mo
Platform membership is separate from any transaction success fee or advisory compensation under your acquisition agreement with Unity.
