the question should be how do private equity firms find good deals see I run a private equity firm and I get these calls all the time from investment bankers and brokers calling me saying Steve we have the perfect deal for you and they try to convince me on the phone that this deal is just for me but I know I know that the second they hang up the phone with me they're calling bill they're calling Jeff they're calling Susan with the exact same deal these are not good deals these are just deals so private equity firms need to find good deals through proprietary deal flow and proprietary deal flow is obtained mostly through connections private equity firms need to get to know lawyers accountants that could don't know when the clients are about to sell and they can tell the firm's in advance private equity firms need to really really get into an industry pick an industry know all the executives in the industry so that when that executive or when the owners of those companies want to sell they look for the private equity firm before they look for everybody else another connection is that you should make connections with other private equity firms heck if a private equity firm has a deal and doesn't have the capital to do the entirety of themselves they may call they might call you the other private equity firm to be part of a syndicate so to get deals you need to get out there get out of that office and you need to beat other people to get the deals come to you finally if you're a private equity firm you need to market really well if you mark it well enough entrepreneurs will know to come to you so if you're a private equity firm you need to find good deals stop taking calls from those bankers stop taking to us from those brokers and get out of your office and get proprietary deal flow make connections with those lawyers with those accountants that have those clients and they know when those clients are about to sell their businesses so you can get in there before everybody else does pick an industry or a few industries and get to know all the executives in those industries so that when they want to sell their business they come to you before they come to anybody else get to know lots of other private equity firms at the end of the day private equity firms when they have a deal sometimes let other people in on the same deal your private equity firm can be in on those deals as well and in addition to connections you need to market really well after all when an entrepreneur wants to sell you want them to think of you in 2014 the yogurt company Chobani needed seven hundred and fifty million dollars before the market found out Chobani was already in talks with TPG why well the co-founder of TPG knew a prominent businessman in Turkey who in turn knew the CEO of Chobani remember we talked about with proprietary deal flow it's all about working the connections you have after all this 750 million dollar deal happened because a guy knew a guy who knew a guy