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Deal Sourcing Jan 28, 2026 · By DeepDive Editorial Team

M&A Deal Sourcing Frustrations — and How Pre-Diligence Solves Them

The five most common M&A deal sourcing frustrations all share a root cause: insufficient information too late in the process. Acquirers who run pre-diligence with Argus before engaging targets resolve each frustration systematically.

M&A Deal Sourcing Frustrations — and How Pre-Diligence Solves Them

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Frequently Asked Questions

Why is M&A deal sourcing so frustrating for brokers?

The five most common frustrations are: too much time on manual research that should be automated, inconsistent lead quality from cold outreach, strong relationships not translating to deals, losing deals to better-researched competitors, and deals dying in diligence because of surprises that earlier pre-diligence would have caught.

How do you find more motivated sellers in M&A?

Motivated sellers are identified through a combination of signals: business owner age and tenure, declining revenue trends, absence of a named successor, industry consolidation pressure, partnership disputes (visible in entity records), and health-related signals from news. AI pre-diligence tools surface these signals across hundreds of companies in the time it used to take to research one.

How does pre-diligence reduce deal failure rates?

Pre-diligence — running an Argus Target Report before engaging a seller or investing in full due diligence — catches red flags early: litigation, financial inconsistencies, regulatory issues, management gaps, and undisclosed related parties. IBBA data shows that deals with thorough pre-diligence screening have materially higher close rates than those that skip early research.

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