new searcher, question about deal with no asking price

searcher profile

January 08, 2025

by a searcher from Rice University - Jesse H. Jones Graduate School of Business in Houston, TX, USA

Hi Everyone, fairly new searcher and new to the site!
I've come across a deal through a broker that has no asking price. Everything I've worked with so far has an initial asking price to start with. Is this common? The business is a manufacturing company and has seen revenue and earnings fall the last 2 years.

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commentor profile
Reply by a searcher
in Boston, MA, USA
When going to market with 95% of our deals over $500k in EBITDA we will not put a formal asking price on the engagement. This is common for deals where PE is going to potentially be involved.

Also worth noting, if your first question to me is around asking price then its a good tell that you're likely not a sophisticated buyer or playing in the same league as a PE group. Asking at the end of a call after picking apart some logistics about the deal to understand if value is there is going to get you further and any serious buyer is going to put in an offer at whatever price they think is appropriate/will be competitive if they're interested. (NOTE: you can also blacklist your self from discussions with a broker if youre putting in offers that arent competitive on price OR terms).
commentor profile
Reply by a searcher
from Thunderbird School of Global Management in Spring, TX 77373, USA
I have dealt with several brokers that dont put price on their deals Benchmark is one of them, the challenge that I have seen in 5 deals i have analyzed through them, is that expectations were much higher than business was worth. They make money with the listing so if it sells or not they have already made a lot of money from the seller. I have heard from one or their brokers that their sales team is very agressive and to get the listing ,they over promise the seller that they will get a much higher price and then the business doesn t sell, but they made a lot of money with lisitng and monthly fees.
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