In this excellent book, Cold Email Manifesto, author Alex Berman says:
“You need to be growing via outbound marketing. And that's why cold email is an excellent way to grow your business, and I would argue the ideal solution for any business that sells to other businesses (B2B).”
If this sounds like the spiel of an email marketer, think again.
A September 2023 Financial Times article (Email is a tool that we just can’t quit), tells us that there are are now 4.3 billion email users globally, and that this figure will grow to 4.7 billion by 2027.
Furthermore, the revenue driven by email reached approximately $10 billion at the end of 2023.
For private equity, there is plenty to suggest that the importance of effective outbound function and email cold outreach takes on even more importance.
Here’s why:
→ Most bankers and brokers run searches on the same mainstream databases, meaning that they are reaching out to the same targets. Successful companies in attractive industries can be approached over 100 times per year by different buyers, which goes some of the way to explaining current historically high valuations.
→ Most of the emails sent are based on ‘salesy’ templates that vaguely attempt to provide some personalization, but can easily be identified by their experienced readers as being based on templates.
→ No two target companies are the same. Even if you’re fishing in the same pool for targets, there are going to be differences between them. Understanding why they’re different and letting the individual reading the email know that you know why is a huge differential when they’ve already clicked on 20+ other buyers’ emails.
At SourceCo, an M&A buy-side deal sourcing firm, we are constantly testing and refining our email outbound function. Below are cold email templates we've seen get the highest open and response rates.
Additional resources:
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The subject line is key to getting the reader to open the email. It should be clear, concise, and relevant to grab the reader’s attention. Bear in mind that it’s competing with dozens of other emails all arriving at the same time, so ask yourself before sending if it’s a subject line that would appeal to you.
Example subject lines:
Best Practices:
[[cta]]
The opening line is arguably the most important of all in the email. If the subject line has been well crafted, it can be reused for subsequent mails. The same cannot be said of the opening line, which must be hyper-personal.
It has to mention something specific about the target, be that a recent achievement, relevant (local or regional) industry news, or a shared connection. And by all means, even though it can feel uncomfortable at first, be sure to use personalized compliments.
Examples:
Brief Introduction of Yourself and Your Firm:
Briefly introduce who you are, what your firm does, and why you’re reaching out. Focus on the relevance to the recipient, remembering that this mail is about them and not you.
If the subject line and opening line are setting the tone, the body will ultimately decide whether the email yields a positive result. The body of the text - your value proposition - should convince the target to consider a call, a meeting, further discussion, or an introduction to somebody they know that is more relevant for your query.
Best Practices:
Case Studies are an excellent inclusion for the body of the email. Show relevant data points, past success stories, or case studies to substantiate your value proposition. Mention similar companies you’ve helped grow or successful exits your firm has facilitated - this allows for people who may have been on the fence of responding to see more results without doing any extra research.
As Sabeeeh Khan, Director, Corporate Development @ Infoblox pointed out:
“When you take the time to articulate what your thesis is, why you think a business would be a good fit for you, what that would mean for the market and you articulate that into an email, we found that business owners are a lot more appreciative of it.”
“We've had a number of them actually tell us that they really liked our approach. And the only reason they responded to us was that we obviously had done some research and we put some thought behind the email. And it's more than likely led to acquisition because of our approach to those cold emails”.
The call to action is the least personalized part of the email but it does need to send a clear message as this is likely to be the last time that the individual reads the email. A clear, contextual CTA helps guide the conversation towards a specific outcome, whether it’s a call, meeting, or further correspondence. This makes it easier for the recipient to respond positively.
Examples:
Provide Options: Offer a few options for the next steps, such as a call, a meeting, or even a follow-up email, giving the recipient flexibility.
Sense of Urgency: Incorporate a sense of urgency without being pushy. For instance, “I’d love to connect before the end of the quarter to discuss potential opportunities.”
Subject: [First Name], Let’s Discuss Strategic Growth for [Target Company]
Template: Hi [First Name], I’ve been following [Target Company]’s growth, particularly in [specific area].
While the [specific progress] is impressive, I’m sure you’re already thinking about the next big challenge, whether it’s scaling operations, securing additional funding, or navigating [specific market challenge].
At [Your PE Firm], we’ve enabled companies like [Related Company] double their revenue within two years while maintaining operational efficiency.
If [Target Company] is exploring options to overcome these hurdles, I’d welcome the chance to discuss how we can support your journey. Would you be open to a conversation later this week?
Why it works
When to use it
Subject: Attached: Your Email Software Innovation Case Study
Template: Hi [First Name], I noticed [Target Company] is doing some exciting work in [specific area], and with the rise of email software in [related industry], there’s a significant opportunity to innovate further.
We recently helped [Related Company] integrate email software into their operations, resulting in a 40% reduction in transaction costs and improved efficiency across the board. They’ve since become a leader in their niche, setting a new industry benchmark.
If you’re considering similar innovations, I’d love to share how we can help [Target Company] achieve even greater results. Do you have time this week for a brief discussion?
Why it works
When to use it
Subject: Ready to discuss a new growth strategy for [Target Company]?
Template: Hi [Recipient’s Name], With [Target Company] [Their achievement] in the [Industry], I’m curious—how are you planning to sustain this momentum over the next 12 months?
We recently partnered with [Related Company] to help them diversify their revenue streams, resulting in a 30% increase in profitability. Would exploring a similar approach make sense for you?
Why it works
When to use it:
Subject: “[Target Company]'s success in [specific achievement] - strategic acquisitions to accelerate growth?
Template: Hi [Recipient’s Name], With [Target Company] making significant strides in [Industry/Market], I’m curious—how are you preparing for the next phase of growth?
We recently guided [Related Company] through a similar transition, leading to a 35% increase in market share. Have you considered how a strategic acquisition could accelerate your plans?
Why it works:
When to use it
Subject: Could [Target Company] Leverage Strategic Acquisitions for a 25% Revenue Boost?
Template: Hi [Name], I’ve been impressed by [Target Company]’s advancements in [Specific Area] [since we last connected/specific event happened] As the [industry] landscape evolves, now is an opportune time to explore strategic acquisitions that could further solidify your market position.
At [Your Firm Name], we helped [Similar Company] achieve a 25% revenue increase in just two quarters by identifying and acquiring complementary businesses. I’m confident we could explore similar opportunities tailored to [Target Company]’s growth objectives.
If you’re open to it, I’d love to schedule a brief call to discuss how we might collaborate. If the timing isn’t right, no worries—happy to keep the conversation open for future opportunities.
Looking forward to your thoughts,
Why it works:
When to use it:
There are best practices for cold email outreach that apply to every prospecting private equity firm.
These practice, outlined below, are all underpinned by consistency.
As Jeb Blount writes in his best-selling book, Fanatical Prospecting:
“The more you prospect, the luckier you get.”
That said, below, we look at best practices for cold email outreach:
Be so good that they can’t ignore you. Easy to say, right? Well, start by acknowledging that all you have to do is get them to read your email. Even for CEOs that receive hundreds of emails every day, getting them to read your email should be something that seems achievable. From there, you open up a world of opportunity for you and your firm. Once they open that mail, you’ve got a chance to wow them. Don’t waste the opportunity by being run of the mill.
Above all, ensure that your mail shows that you’ve taken the time to understand the audience - highlight mutual benefits and demonstrate a deep understanding of the target's business. This establishes trust early. Ideally, use warm introductions (through someone who can refer you to them) when possible and maintain consistent communication
Resilience is a pillar of successful any cold email outreach strategy. Many of the authors of cold emails have already written the follow-up email before the first email has even been sent. Why? Because you can anticipate a significant amount of non-responses. Physical letters, sent by post, can be used to reinforce the message as can phone calls. To quote Dale Carnegie: “Inaction breeds doubt and fear. Action breeds confidence and courage.”
Nothing beats brevity. If you can say everything you want in 200 words, don’t spend 1,000 words to say the same thing. Your reader will appreciate you coming to the point. It respects their time and ultimately, communicates what you want to say in a clearer manner. This has a second benefit: If your reader isn’t compelled by the value proposition of the first email, they’ll be more likely to open a second one if they know that it’s not going to take them 15 minutes to read.
If you’re doing this properly, the list of potential targets you’ve contacted is going to become quite long, quite fast. Use CRM to log every interaction, follow-up, and conversation with potential targets for continuity even if your team members change.
This helps to make informed decisions based on past interactions, improving the effectiveness of the outreach strategy by having a complete picture of the relationship dynamics and history.
Curious about untapped targets? Schedule a free call to find a pre-vetted fit even in the most niche of searches
Free Templates
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