(QUESTION) Self-Funded Searcher Access to Large Deal CIM

by a searcher from American Military University

6 months ago

Hello everyone. I am conducting a self-funded search within a small geographic area while also working full time. I recently contacted a broker to inquire about a listing with advertised $1.7MM EBITDA. Upon completing the NDA and personal financial questionnaire, The broker declined to provide the CIM. I'm sure the broker is merely trying to avoid a large amount of tire kickers to eventually lead to nowhere. 

My question for the community is, What are the generally accepted practices within the ETA community for a self-funded searcher (who knowingly will need investor support to close a deal) to review a business valued above that which his/her personal situation can support? 

I would certainly appreciate any insight.

1 like
194 views
7 comments

searcher from University of Toronto - Joseph L. Rotman School of Management

+1 on being patient, getting to know the brokers, and trying to establish a positive working relationship wherever possible. I'm still searching and new, but that seems to have helped me (still working on that website though, haha)

6 months ago | like reply | 1 like

searcher from Purdue University

Every situation, including yours, is different, but I can only tell you what has worked for me. I tell brokers that I just sold my insurance-facing business and am looking to buy another. That is often good enough (and just to be clear, is completely true). I've only had one broker blow me off.

A one-liner that checks the boxes for seriousness and means has served me well.

6 months ago | like reply | 2 likes

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