A broker reached out to me with a deal that we have significant interest in (in an industry that we have already been spending time looking into). I spoke to the broker a couple of weeks ago, explained who were, our financing and why it might be a good fit and they agreed.
It also appears that the broker hasn't really spent any time on this company yet and they are very early in the process (no real timeline to speak of). Naturally, our thought was "let's move quick and try and preempt any process." We reached back out to the broker with a few questions and explained that if we could get a couple of answers (or even better a prelim call with the CEO), we'd be able to make an offer relatively quickly. No response. One or two more emails in, no response.
What we are wondering now is whether or not it's a good idea to reach out to the CEO of the company directly? Importantly, we aren't trying to cut out the broker, etc. just want to move quickly. Any thoughts?
Is it ever a good idea to go around a broker?
by a searcher
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
The business still hasn't sold (it's been over a year), so I may have been right about the broker, but the reality is that the broker (if s/he's got the contract) will have far more time w/ the seller than you. So most of the time, what the broker thinks of you, the seller will eventually think of you. The one exception may be if the broker continues not to respond to you, that forces your hand, but otherwise, keep the broker in the middle, happy, and convinced you're the right buyer for the seller AND the broker.
This is also why I spend 95% of my time on propriety deals and avoid brokered deals unless they are the perfect fit...