Private Equity Deal Sourcing Trends and the Rise of Buy and Build Strategies with Elliot C. Jarvis 5-10-26

Summary

Podcast Summary: Becker Private Equity & Business Podcast

Episode: Private Equity Deal Sourcing Trends and the Rise of Buy and Build Strategies with Elliot C. Jarvis
Host: Scott Becker
Guest: Elliot C. Jarvis
Date: May 10, 2026

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Episode Overview

In this episode, Scott Becker interviews Elliot C. Jarvis, a seasoned professional in private equity and M&A, about current trends in deal sourcing, the evolution of buy and build strategies, and actionable advice for private equity professionals. The conversation centers on the dynamic changes in how deals are sourced, sectors seeing the most activity, and the shifting balance between intermediary and proprietary deal flows. The episode closes with a lighter exchange about Elliot’s personal plans for the summer.

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Key Discussion Points & Insights

1. Introduction and Guest Background

• Elliot’s Background (01:33):
  • Over 10 years in M&A, both on the sell side and buy side.
  • Experience at leading law firm McGuire Woods.
  • Focused on business development, sourcing, and helping business owners with transitions and exits.

2. Current Trends in M&A Deal Sourcing

• State of Deal Flow (02:12):

  • Deal flow remains robust across the market.
  • Private equity business development functions are expanding and evolving, shifting from “intermediary” led sourcing toward hybrid models.
  • Proprietary deal flow is increasingly emphasized, with firms actively reaching out to potential sellers directly, in addition to working with intermediaries.

• Elliot Jarvis:

  “A lot of people have moved from intermediary kind of coverage to kind of a hybrid… along with proprietary deal flow and sourcing through a business development function.” (02:18)

3. Market Focus: Lower Middle Market & Buy and Build

• Greater Activity in Lower Middle Market (03:08):

  • Most notable activity is in the lower middle market.
  • Emphasis on roll-up and buy and build strategies, especially in service-oriented sectors.
  • Key industries: software services, healthcare services, and general business services.

• Industry Trends (03:39):

  • Home services (HVAC, landscaping, roofing) are experiencing significant PE roll-up activity.
  • These sectors are becoming primary targets for platform building and consolidation strategies.

• Elliot Jarvis:

  “Seems like a lot of home services is kind of the new trend that I'm seeing... private equity firms buying platforms and growing them.” (03:43)

4. Best Practices in Deal Sourcing

• Hybrid Approach Dominates (04:26):

  • PE firms are now blending direct, proprietary sourcing with traditional investment bank channels.
  • Building direct relationships with business owners is particularly valuable, but maintaining intermediary connections remains crucial.
  • The shift is roughly a 50:50 balance between these two channels.

• Relationship Building Matters (04:35):

  • Proprietary deal flow delivers long-term benefits because of firm-to-owner relationship development.
  • Intermediaries still play an important supporting role in deal origination and process management.

• Elliot Jarvis:

  “Proprietary deal flow has always been more beneficial... building the relationships with those owners from the firm level to the business owner.” (04:36)

5. Personal Touch—Summer Excitement

• Elliot’s Summer Plans (05:32):

  • Passionate about golf—enjoys playing in the Chicagoland area and in Northern Michigan.
  • Praises the beauty of Northern Michigan in the summer.

• Memorable Exchange (06:05):

  • Becker quizzes Jarvis about famous musicians who love Northern Michigan.
  • Jarvis nails it with “Kid Rock,” earning a playful “free book” award from Becker.

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Notable Quotes

• On the evolution of deal sourcing:
  “A lot of people have moved from intermediary kind of coverage to kind of a hybrid of intermediary coverage along with proprietary deal flow and sourcing through a business development function.”
  — Elliot Jarvis (02:18)

• On industry trends:
  “Seems like a lot of home services is kind of the new trend... private equity firms buying platforms and growing them.”
  — Elliot Jarvis (03:43)

• On best sourcing practices:
  “The proprietary deal flow has always been more beneficial with building the relationships with those owners from the firm level to the business owner.”
  — Elliot Jarvis (04:36)

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Timestamps for Key Segments

• 00:57–01:33: Introduction, Elliot’s background
• 02:12–02:59: Current trends & evolution in deal sourcing
• 03:08–03:39: Where deal flow is busiest; lower middle market focus
• 03:39–04:09: Top industries for buy and build strategies
• 04:26–05:13: Advice on deal sourcing; hybrid approach explanation
• 05:32–06:07: Personal segment—summer plans & Northern Michigan
• 06:05: Kid Rock as answer to “famous musician” (memorable moment)

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Tone and Takeaways

The episode is conversational and warm, with frequent praise and good-natured banter. The insights are actionable and reflect Elliot Jarvis’s practical experience in private equity deal sourcing—particularly the strategic evolution toward a hybrid, relationship-driven approach and the rise of home services as an attractive investment target in the lower middle market. The closing, lighter exchange about golf and Michigan adds a personal touch, reflecting the relaxed and engaging nature of the podcast.

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For private equity professionals and dealmakers, the core message is clear:

• Embrace a hybrid sourcing model, blending direct relationships and intermediary resources.
• Watch for active roll-up strategies, especially in home and business services.
• Relationship-building with business owners remains a differentiator in competitive markets.

Transcript

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[Scott Becker]

This is Scott Becker with the Becker Business and the Becker Private Equity Podcast. Thrilled today to be joined by a brilliant young professional. We're joined today by Elliot Jarvis. Elliot's worked for the last several years in the business development private equity field. At one point he worked for the same law firm as myself. Just a tremendous, young, talented person. Elliot, can you take a second and just introduce yourself? Then we'll talk a little bit about what trends you're watching in the business world, what you're most focused on, and a lot more. Elliot, can you take a moment and introduce yourself?

[Elliot Jarvis]

Yes. Thanks Scott. So again, I'm Elliot Jarvis. I have been in the M and A world on both the sell side and the buy side for about 10 and a half years. As Scott mentioned, I did work at McGuire woods and have always been focused on business development and sourcing and helping business owners with their transition and, you know, selling their businesses.

[Scott Becker]

Talk about the trends you're watching in that area today, the M and A market. What are you seeing? Are deals coming back? Is it still sort of soft? What's your sense of what's going on in the deal market currently?

[Elliot Jarvis]

Yeah, so I think deal flow is still very strong. I think there's a lot of private equity firms that are really focusing on their business development function and sourcing deals differently than they probably did, you know, five, 10 years ago. I think a lot of people have moved from intermediary kind of coverage to kind of a hybrid of intermediary coverage along with proprietary deal flow and sourcing through a business development function. And so I think there's still a strong sourcing function at all private equity firms. And I think it's going to continue to grow for the years to come.

[Scott Becker]

If you think more of that at the lower middle market, the huge mega funds, where do you see that being the most busy, the most active?

[Elliot Jarvis]

I think more the lower middle market is where I've been exposed to the most. I see a lot of firms focusing on service businesses as roll ups in buy and build strategies across you know, software services, healthcare services, business services. I think most in the lower middle market there's a lot of buy and build strategies happening in the market.

[Scott Becker]

And are there specific industries that you see more active than others?

[Elliot Jarvis]

Any sense there definitely see H Vac and kind of like home improvement businesses really being rolled up quite a bit. Whether that's landscaping or you know, H Vac or roofing. Seems like a lot of home services is kind of the new trend that I'm seeing more and more private equity firms buying, you know, platforms and growing them.

[Scott Becker]

Fascinating, fascinating. And little advice that you would give to funds looking for deals. The best way to find deals, the best way to source deals. How much of it is through direct contact with founders versus through investment banks and so forth?

[Elliot Jarvis]

Yeah, I think it's really moved to kind of a 50:50 hybrid model where business development functions of private equity firms are utilizing the know investment bank community along with their own proprietary out outreach and sourcing. I think from my experience I the the proprietary deal flow has always been more beneficial with building the relationships with those owners from the firm level to the business owner along with you know also having investment bankers and brokers be involved with the process.

[Scott Becker]

Fantastic. Elliot, tell us one thing that you're most excited about going into the summer. Is it the deal world? Is it a specific sports team? Is it getting out to golf? Is it reading? What's the one thing you point to and say God, I'm excited about this going into the summer now?

[Elliot Jarvis]

Yeah, I think one thing that always excites me is I play a lot of golf. And so being able to play golf in the Chicagoland area as well as going up to Michigan is always great. I don't think there's any better place than Northern Michigan in the summer. And so look forward to going up there and playing golf and hanging out on the water.

[Scott Becker]

Who's the most famous musician who just loved Northern Michigan? Anybody that you could point to?

[Elliot Jarvis]

Probably Kid Rock.

[Scott Becker]

I think that's the answer. This answer pays. You get a free book for that answer. Thank you so much. No Elliot, absolutely. That's the right answer. Thank you for our listeners for listening. Thank you to Elliot for joining us on the Becker business. The Becker Private Equity podcast. What a pleasure. It's like old home week for me, getting a chance to visit with Elliot, as good a person as they come. Elliot, thank you for joining us.

[Elliot Jarvis]

Thank you, Scott. Appreciate it.