Broker deal sourcing

searcher profile

November 06, 2024

by a searcher from Binghamton University, State University of New York - School of Management in Los Angeles, CA, USA

Curious to hear others’ thoughts on brokered deal aggregators and their coverage of the total US market for brokered deals (those in the LMM not marketed by bankers). Would you say it's 25%, 50%, 75% total coverage? Basically trying to calibrate on where to spend time versus where there might be diminishing returns. I’m thinking of aggregators like Kumo, BixBuySell, etc.

0
11
106
Replies
11
commentor profile
Reply by a professional
from Bentley College in Miami, FL, USA
Great question. Honestly, I haven't seen statistics on market coverage by these aggregators. If you think about this on a high level, there are really three possible types of brokered listings.

1) Listings that the broker will first circulate to their internal list of qualified buyers.
2) Listings that the broker will put on their own website but not on BizBuySell or other platforms.
3) Listings that the broker will circulate widely and put on BizBuySell, Axial, etc.

I think aggregators like Kumo, Interexo, BizNexus Marketplace will cover categories 2 and 3 quiet well. I don't know what the exact coverage ratio might be but I wouldn't be surprised if it's close to 80 or 90%.

Here are a few articles that may be helpful:
-- https://www.duedilio.com/maximizing-deal-flow-tools-and-strategies-for-small-business-buyers/
-- https://www.duedilio.com/utilizing-online-marketplaces-for-ma-deal-sourcing/
-- https://www.duedilio.com/the-role-of-ma-intermediaries-in-deal-sourcing/
commentor profile
Reply by an intermediary
from Queens University of Charlotte in Charlotte, NC, USA
Axial is a good option. I also have a proprietary network for deal collaboration but generally larger than most businesses "for sale" on public listing sites.
commentor profile
+9 more replies.
Join the discussion