It doesn't work the same way with the new MacBook. You can manually transfer data with target disk mode, but Migration Assistant doesn't work with it.
but I can't seem to get the iMac to find my Macbook as a bootable drive,
It is not going to show up as a bootable drive to another Mac.
https://support.apple.com/en-us/HT204360
Your MacBook with USB-C port supports USB target disk mode. You can enable target disk mode and use the following USB-C cables to transfer data. These cables are not currently available from Apple.
- USB 3.0 or USB 3.1 USB-A to USB-C Cable: Use this cable to manually transfer data from any Mac notebook with USB-A port(s) to your MacBook with USB-C port. This cable cannot be used to migrate data using the Setup Assistant or Migration Assistant application.
- USB 3.0 or USB 3.1 USB-C Cable (USB-C to USB-C): Use this cable to migrate data from any MacBook with a USB-C port to another MacBook with USB-C port using the Setup Assistant or Migration Assistant application.
To enable target disk mode, hold down the T button on your keyboard while starting your MacBook. Then connect either of the USB-C cables described above. The USB-C Charge Cable (2m) supplied with your MacBook doesn't support target disk mode.