Experience with brokers

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April 26, 2021

by an member from Universidad Nacional de Educación a Distancia in 11100 San Fernando, Cádiz, España

What has your experience been working with brokers? In what way do you think brokers can be more helpful and improve their services? What do you look for when working with a broker? What do you value the most about a broker?
It'd be great to listen to your feedback and experiences.

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Reply by a searcher
from Stanford University in Salt Lake City, UT, USA
I did a self-funded deal through a broker and had a generally positive experience. The brokers biggest value-add was helping the seller set realistic expectations (on price, on the need for a seller note, on how much a PITA a SBA loan process would be, etc.). I made it from LOI to close in 2 months to hit the SBA section 1112 provision...this would have been hard without the broker. I felt like the broker I worked with did a good job of knowing what meetings he needed to attend and voice his perspective, and what meetings he could skip. It was nice to still get some 1-on-1 time with the seller and management team. I made it a top priority to earn the broker's trust so that he could step out of the picture somewhat.

At the end of the day, a broker is as valuable as the quality of business they represent. If they have a good business, then paying a slight premium and dealing with a broker is more than worth it.
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Reply by a searcher
from University of Queensland in Brisbane QLD, Australia
Most brokers don't have enough experience in an industry to help set realistic price expectations for sellers. Most investors I know say roughly 20% of brokers know their stuff for that specific transaction. I think the best deals are those which just involve you and the owner so you can properly understand the sellers motives for leaving and find a mutually beneficial way to do a deal
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