Prioritizing intermediary outreach efforts based on anticipated deal flow

searcher profile

May 04, 2024

by a searcher from University of Toronto - Joseph L. Rotman School of Management in Vancouver, BC, Canada

Apart from Business Brokers, I can think of the following key intermediaries to engage for proprietary deal flow:

1.Accounting Firms 2.M&A advisory firms / small investment banks 3.Wealth Managers 4.Lawyers 5.Trade Experts / Board members at local chamber of commerce 6.Succession Planning folks 7.Private consultants who work with SMB owners 8.Commercial Bankers 9.Commercial Real Estate Brokers 10.Valuation Advisors

In using the search time effectively, wanted to get thoughts from this group on which of these intermediaries have helped them with getting more deal flow ? I’ve tried reaching out to Accounting firms that do some M&A advisory and have had positive experience there. Most importantly, would love to know which of these intermediaries didn’t materialize to a decent deal flow (benefit/effort) for searchers here.
Also, please add any other sources/intermediaries that you found very helpful but I haven’t included above. Thanks!

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commentor profile
Reply by a professional
from Wilfrid Laurier University in Toronto, ON, Canada
^redacted‌ I’d say the large one missing is “equipment appraisers”. For a lot of these smaller SMB - the biggest component of the purchase price is assets (goodwill is the smaller component). the book value of assets mean nothing . Book value for inventory may be okay (unless it’s produce or something), but for used machinery and equipment - equipment appraisers are a must

hit me up - redacted
commentor profile
Reply by a professional
from University of Southern California in North Palm Beach, FL, USA
Keep in mind that advisors to businesses get fired when the company is sold. Only the most naïve buyers retain the professional advisors to the company they acquired. This concept relates to the motivation of advisors to tell searchers about their clients who are not yet actively trying to sell the company?
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