Broker Calls & Initial Owner Calls

January 03, 2026

by a searcher from Northwestern University - Kellogg School of Management in Brooklyn, NY, USA

Hi, I am about to have my first few broker calls on deals that I am interested, then hopefully if they go well I'll have my initial call with the owner(s) for one or more of these deals. I recognize that initial calls are meant to build a rapport with the broker/seller, find out what the seller wants in an offer, show I'm a serious buyer, and present as a reasonable person to work with, without getting too into the weeds. With that said, I have questions about some of the add-backs, customer concentration, etc. I am therefore curious to learn a bit about when do people feel it is best to ask which level of questions as it relates to: 1) broker call, 2) seller call, 3) site visit, 4) pre/post-LOI, etc.

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Reply by an intermediary
from University of Texas at Tyler in Tyler, TX, USA

From my personal perspective, the more certain a broker and consequently an owner are that you can close the deal (financial proof) the more info they're likely to give you. A good broker should vet that from the beginning, so when you get to the point of having calls with the owner, you'd most likely be in a position to ask whatever info you'd like about the business. I would steer clear of valuation-related questions when talking to the owner, however, and go through the broker or the owner's accountant (whoever did the valuation) for things like that. Owners are known to get defensive about finances in particular and you don't want to lose out on a good deal because you pressed too hard about X expense or why they're outsourcing Y. If the info presented to you in the CIM is detailed enough and the initial calls go well, the site visit usually clears up any other operating procedures questions and the diligence phase clears up any fine details in the finances.

Reply by an intermediary
from University of Virginia in Arlington, VA, USA

If you have questions about adjustments to EBITDA those should absolutely be made to the banker pre-IOI. Most owners don't understand their own financials, asking them questions like that is an easy way to sink 30 minutes without getting any of the answers you need. Once a banker produces answers I personally would bid off of the assumed EBITDA or make my adjustment and present a multiple on the EBITDA you're bidding off of - then let your QoE team dig into the nitty gritty post-LOI. Since it is non-binding if the QoE team finds something material you can just drop the deal or make a purchase price adjustment (w/o being called a re-trader) post-QoE. The risk is that you end up paying a QoE firm fees for a deal that never closes - but that's the game. Nothing screams amateur more than a searcher who hems and haws about de minimus adjustments on an intro call. Surefire way to irritate an owner and intermediaries before even submitting an offer. For the owner, you want him/her to like you and think of you as a good leader for their business, especially if there is a rollover component to the deal. You ask about vanilla things - growth opportunities, the facilities, who are the key employees, their plans post-transaction, operations, HR, etc.

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