Do Letters Still Work for Deal Sourcing in 2025?

For years, direct mail letters have been one of the best ways to source off-market business deals. However, with the explosion of M&A training courses teaching this method, letters have become a saturated approach. Many business owners now receive numerous nearly identical letters from acquisition entrepreneurs, often following the same templates shared in these courses.

The Challenge with Letters in 2024

While letters can still be effective, their overuse has led to diminishing returns. Here’s why:

1. Seller Fatigue – Business owners are being inundated with similar letters, making them less likely to engage.

2. Lack of Differentiation – Many letters follow a near-identical structure, making it harder to stand out.

3. Shifting Seller Expectations – Owners are now more skeptical, as they recognize these letters as a widespread tactic rather than a genuine personal approach.

How to Make Your Letters More Effective

If you’re still using letters, you need to refine your approach to break through the noise:

• Personalization is Key – Move beyond the generic templates and craft messages tailored specifically to the business and owner.

• Go Beyond the Standard Script – Avoid predictable phrases and clearly articulate why you're reaching out.

• Mix Your Outreach – Combine letters with calls, emails, and LinkedIn outreach to create a multi-touch approach.

• Focus on Value, Not Just Interest – Instead of just stating that you’re interested in acquiring the business, highlight how selling to you could be beneficial for the owner.

Testing Different Sourcing Tactics

As with any deal sourcing tactic, testing is key. A successful dealmaker should always test multiple approaches in different industries and markets to determine which yields the best results. For example, while letters generated a 30%+ response rate in the hair & beauty sector, they saw less than 1% in marketing. However, when testing LinkedIn outreach in the marketing space, an 18-20% positive response rate was achieved. The lesson? Different sectors respond to different outreach methods—what works in one industry may not work in another.

Conclusion

Letters are not dead, but their widespread use has made them less impactful than before. If you want success in deal sourcing through direct mail, you need to adapt, differentiate, and integrate other outreach methods. Most importantly, continuously test different strategies in new markets to uncover the most effective ways to generate high-quality deal flow.