Key takeaways

Most AI talk in search stops at “emails and CIM summaries.” Useful, but not differentiating. The searchers quietly pulling ahead are not running autonomous agents. They are stacking a few targeted tools around workflows they already understand.

1. Sourcing: narrowing the universe 

AI is most mature in sourcing. Grata and Sourcescrub both work as tireless researchers that pre-qualify targets through web-scraping and data linking.  

Grata provides top-down thematic, thesis-driven searches. While it offers breadth and filtering for cross-border searches, depth fluctuates depending on local disclosure norms. Sourcescrub focuses on bottom-up discovery through curated industry lists and local datasets. It is effective in North America but lacks the same maturity in international markets.

If price is a constraint, you can still run a usable sourcing engine without an enterprise-grade data product, but the trade is coverage. An alternative setup is Perplexity + Claude + Clay:

Perplexity and Claude find and standardize names and list sources into a consistent target spec; Clay ingests, dedupes, and enriches the seed list “à la carte” so you can prioritize outreach without a five-figure contract. 

As a rule of thumb, this stack holds up for selective outbound and if you’re willing to source contact details manually; at higher volumes, “contactability” becomes the bottleneck.

The value is operational, not predictive: these tools keep origination moving without living in databases, reallocating time to owner conversations and underwriting, where judgment still decides outcomes. 

2. Outreach & relationships: AI wrapped around memory

Once conversations start, the constraint is bandwidth and follow-through. Most searchers start with a traditional CRM, often HubSpot, for pipeline tracking. However, a growing number are moving to lighter or relationship-centric tools. Streak (email-native) and Affinity (relationship mapping, LinkedIn-derived context) help searchers track relationships, spot stalled processes, suggest warm paths, and draft first-pass outreach. 

None of this creates trust, it only lowers the cost of staying organized. 

3. Diligence: the first researches compressed

AI is increasingly present in early diligence. Tools like V7 (knowledge hub), Gavel Exec (contract benchmarking), Google NotebookLM (excellent for uploading 20+ PDFs and "chatting" with the specific deal room data with limited hallucinations) or Claude 3.5 Sonnet (via "Projects") can handle early synthesis.

Using AI as a contrarian sparing partner with the aim to find potential blind spots, or appending “ask me 10 high impact questions before answering my question“ to your prompt can significantly increase output quality. 

However, this is where searchers should be very conservative. For most, THE acquisition remains a once-in-a-lifetime deal. AI should only be used selectively to stress-test your own assumptions, pressure-test investor narratives, and surface areas where deeper human diligence is required. 

4. Modeling & scenarios: speed, not alpha

ETA modeling remains Excel plus judgment. cube (data-mapping automation) and Claude (more numbers savvy) can clean exports, speed up base builds, and run quicker downside sweeps. 

The gain is time: less formula-wrangling, more focus on whether the business will survive. However, often you have limited transparency on what has been done… again something rather to use as verification.

We like some of these tools for one reason: they convert attention into reps. They reduce the switching costs that quietly kill a search. When that friction goes away, the searcher can spend more cycles on the two places outcomes actually move: owner relationship building and investment underwriting.

In a crowded market, the advantage is not a secret tool. It is using AI smartly and where helpful to buy time for the parts of ETA that still cannot be automated.

Legacy Partners has worked across the ETA ecosystem for years, advising searchers, operators, and investors through acquisition, diligence, and operating transitions. Feel free to reach out by replying to this email! We’re always happy to help. 

Educational and professional opportunities in the search fund space are growing. 

IESE Business School will host a Search Fund & Entrepreneurial Acquisitions Bootcamp in Barcelona this June, while INSEAD has opened pre-registration for its ETA Conference in May 2026. 

In parallel, evolutiq Search Fund Day will take place in Köln in March 2026. Registration is currently open; given limited capacity, a waiting list will be introduced in early January to allow interested participants to register their interest. The New Mittelstand Summit, scheduled for April 2026, has also recently opened registration, with Legacy Partners participating as an official event partner.

IESE, INSEAD, evolutiq Search Fund Day, New Mittelstand Summit, Germany's succession calendar 2026 

EasyGo – IT

Italy-based EasyGo has launched following a €7.5m fundraise backed by Mare Group and Borgosesia. The vehicle targets Italian SMEs, with a focus on founder succession and generational transitions. (Link)

Preludio Partners – ES

Spain-based Preludio Partners, founded by Andres Garrido and Curro Fita, announced the completion of its search and first acquisition in December 2025, marking its transition from launch to execution. (Link)

MMP Capital – PT

Portugal-based MMP Capital, founded by Miguel Marques Paulo, has completed its fundraise and launched with a focus on acquiring SMEs with €1–7m EBITDA and enterprise values of ~€10–50m. (Link)

WAD Capital – BE

Belgium-based WAD Capital has completed three platform acquisitions, Groupe Jordan, Mignone, and Alsec, across HVAC, building, and safety verticals. The group aggregates approximately €3.5–4.0m of EBITDA and ~240 employees. (Link)

Divisadero Capital – ES

Spain-based Divisadero Capital has acquired VisualCounter, a retail analytics company operating in 80+ countries, expected to generate ~€8m in revenue (2024) and ~€3.5m EBITDA. (Link)

Alvia Capital – DACH

DACH-based Alvia Capital, a self-funded vehicle founded by Hans-Cornelius Kölln and Max Techand, has acquired Daheim Gruppe, a care provider with 100+ employees, positioning the platform in a demographic-driven sector. (Link)

From $300k SDE to $5M EBITDA (Acquiring Minds Podcast)

Linh Tran bought a small commercial refrigeration business that claimed ~$300k SDE (but was closer to ~$150k) and scaled it into a group producing $5M+ EBITDA. He explains how hands-on early ops work, disciplined acquisition criteria (recession-proof, required, recurring), and strong systems/delegation powered the growth—while protecting culture and work-life balance (including a real 40-hour week).

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