Broker outreach question
February 24, 2022
by a searcher from North Carolina State University in Sykesville, MD 21784, USA
I am planning to start emailing brokers with a concise write-up of what kinds of businesses I am looking for, and a brief background on me. My goal is to get onto their buyer's list. I was originally planning to send it out as a short email with an 1-page flyer attachment. After reading more, it seems that might not be a good idea, as the messages will likely end up in the spam folder. So, I now plan to send the content in an email.
My question is: Do the brokers prefer to see a plain text email or a nicely formatted HTML email with pictures? Also, do brokers even want to see an email or do most prefer a phone call?
from Royal Melbourne Institute of Technology in Sydney NSW, Australia
Differentiate yourself. Many Search Funders (SF's) wants the same thing (e.g. levels of EBITDA, business model, etc etc)...which is also the same thing that industry players and PE firms want. But there are a bunch of things that give SF's a disadvantage, such as: they can't make the ultimate decision to invest, they over-estimate how easily they can tap into the capital required, they also lack the strategic levers that industry players have, meaning their willingness and ability to pay higher multiples may not be there.
I don't say these things to be negative, and please don't misunderstand me here...SF's can have advantages over other buyers too. I just think if you want to leverage a network of brokers, you need to frame your messaging with the broker's context/situation in mind. They actually have a really tough job, and their biggest issue is buyers who can't get deals done and waste a lot of their time...which also upsets their clients.
So try to differentiate from other SF's and buyers. Address potential objections early in the piece and you'll stand out as a serious candidate.
from University of Memphis in 5000 Linbar Dr, Nashville, TN 37211, USA