Broker strategy?

by a searcher from University of Virginia-Darden - Darden School of Business

3 years ago

Hi all, just wondering how you are working with brokers. I have heard that you need to build a close relationship so that you can get deals before they hit the websites. 

My interactions with brokers so far have been transactional. Basically, I've asked them for info on some companies, the companies were garbage, and at that point I'm disinterested and they probably feel like they've wasted time.

What's your relationship-building strategy?

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searcher from University of Virginia-Darden - Darden School of Business

We try to get an intro whenever possible (asking other searchers, operators, potential lenders we chat with to make an intro or if we can mention their names). We also try to find a balance between asking about enough deals (we don't have a focused industry) but not asking about too many deals at the same time. When rejecting a deal, we use specific reasons and language in the CIM to show we've taken time to read and thought about the deal seriously.

3 years ago | like reply | 0 likes

searcher from Concordia University

They get thousands of emails of tire kickers so my strategy is to find some decent ones in the area I am targeting and set up a meeting with them. Be prepared by knowing your target industry, target SDE and type of growth stage (start-up, developing, mature, retiring owner etc.). Have financials ready to show them you are serious and then go from there. That should start some deal flow your way.

3 years ago | like reply | 1 like

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