broker outreach for industry-targeted search

April 25, 2024

by a searcher from Columbia University - Columbia Business School in New York, NY, USA

Hi everyone,
I'm struggling to build a list of brokers for my initial introduction / outreach because my search is industry-targeted. Do you have any advice on finding relevant brokers based on industry?

I'm doing a somewhat industry-specific search: tech-enabled services, software, or other white-collar professional services. I can find related brokers via IBBA, but only a small fraction of those brokers will actually have a relevant listing. For example, I have reviewed ~20 of 500+ brokers marked as industry-relevant by IBBA. Probably about 15% actually have a relevant listing.

Let me know if I'm overthinking it and should just reach out. For reference, I plan to mention all the relevant details about myself: full-time searcher, willing to relocate, funding available, relevant experience, etc.

Thanks for any thoughts.

1 Like

30 Replies

252 Views

Replies

Reply by a searcher
from Notre Dame de Namur University in San Francisco, CA, USA

^redacted‌ thanks for the tag,
I take a unique approach compared to some search or acquisition entrepreneurs. When I communicate with brokers, I specifically seek those who have experience working with individuals transitioning from corporate roles and who are poised to become acquisitive. This ensures access to off-market deals. My primary focus is on brokers who demonstrate a track record of successfully closing deals. Therefore, I recommend reaching out promptly without overthinking it. A simple phone call is often the most effective way to initiate the process and secure a deal. Also some brokers who only specifically work in one industry will be great, but can also be rigid in how the deal gets done such as—laundry mat brokers— one way of getting deals, which might not help in being creative

Reply by a searcher
from Northwestern University in Chicago, IL, USA

Suggest that you contact all those that are possible. Pros and cons of trying to find a broker that specializes. Many brokers take a listing regardless of the industry. Some however specialize in a particular industy once they do a deal or two and have some knowledge to target potential sellers. Healthcare is an example where many brokers specialize, they may focus on dentistry, chriropractic, etc. If you contact a broker and they don't have what you are looking for ask for a referral to someone else. You can also network with other searchers who have bought similiar businesses and they are usually helpful and will let you know who they used. Current searchers may not be as helpful since they do not necessarily want to add additional competiton however wouldn't avoid. Many times a deal doesn't work for them and they decide to pass and will refer a deal your way.

+28 more replies.

Join the discussion