Initial Screening Call w. Sellers

I see the sequence of questions being "out of sequence" all the time.
- what is their motivation...sell high, sell for need or sell for another opportunity. Those play into your own motivations of buy low, by value or need to own certain type of business.
If motivations align...then light rapport building.
Then if deal type is right and rapport is semi-established...then financials.
Why talk numbers if they want the moon.
Why talk numbers if they are so desperate that their timing does not align with your due diligence.

Why talk numbers if you get any sense they are not being truthful enough.



Numbers last.

The last thing you want to do is ask financial questions and get into valuation. Sellers are not going to share such private info to a stranger. And, many of them, if not most of them, do not know their EBITDA (or adj. EBITDA), not what is debt-free-cash-free balance sheet, etc. I would venture to say most MBAs and CFOs do not know that either (based on teaching many MBA students and many CFOS and accountants). I understand you do not want to waste your time either. That is fair. I cannot give complete answer to what you should ask. But, first priority should be … Would they consider a sale? What kind of buyer would they prefer? How large a company they have (not $, bit do you have less than 100 employees? Do you have less than 50 machines? How big a facility? Do you own RE?. There are so many ways to skin the situation. But you must establish a rapport.) Your job is to keep the dialogue going, and not ask a question that ends the conversation or makes them say, I can't tell you. Also, offer them what you can send them about you, like … Can I send you my profile and acquisition criteria and f/u? How do I send that w/o anyone finding out that to preserve confidentiality amongst your employees?