What would the translation be if the sentence was: We are not looking for small sheep (plural).
"Nehledáme malé ovce"/"Malé ovce nehledáme"
Why is it not malou in plural?
Check the hard adjective declension endings in the Tips and notes of this skill.
It is not malou, because the grammar rules say it must be malé, exactly as tatka_ said.
I guess "small" should be correct here?
Yes, small is also accepted. Thank you for using the Report button in addition to posting! There was a typo in your answer: "we are not loo for a small sheep." (I assume this was your report, based on the time stamp of the report and your comment.)