Brokers that will actually make a difference in your search?
April 04, 2025
by a searcher from HEC School of Management, Paris in Nice, France
As I'm working on my method to search more efficiently for profitable companies, I started asking every searcher-turned-CEO I meet (30+ so far) a simple question: How did you find the business you acquired?
A good majority of them said: through brokers. Others got "lucky" and mentioned trade shows, and some through funds that didn't focus on smaller deals. But here’s what I hadn’t always asked at first: How did you find those brokers in the first place? Yes, there are lists out there. But over the past weeks, I’ve started asking people I meet, whether it’s the president of a Chamber of Commerce, a CPA, or a lawyer working with SMEs if they could recommend 1 or 2 people I should speak to in their network (and ideally M&A boutiques or brokers in case they knew some). This week, that approach paid off. A CPA introduced me to a "hidden" broker who isn’t on social networks, doesn’t know what a SF is, but has been closing 5–10 deals a year in our exact target range for the past decade. Only work on word of mouth.
A good majority of them said: through brokers. Others got "lucky" and mentioned trade shows, and some through funds that didn't focus on smaller deals. But here’s what I hadn’t always asked at first: How did you find those brokers in the first place? Yes, there are lists out there. But over the past weeks, I’ve started asking people I meet, whether it’s the president of a Chamber of Commerce, a CPA, or a lawyer working with SMEs if they could recommend 1 or 2 people I should speak to in their network (and ideally M&A boutiques or brokers in case they knew some). This week, that approach paid off. A CPA introduced me to a "hidden" broker who isn’t on social networks, doesn’t know what a SF is, but has been closing 5–10 deals a year in our exact target range for the past decade. Only work on word of mouth.
from Harvard University in Boston, MA, USA
So what does that mean for your search? First, start with an appreciation and respect for these generational differences. When you do find an attractive deal or broker, make a good impression and don't be lazy - there is a glut of bad deals and a dearth of truly good ones. Really study the CIM before you get on the first call. Impress the broker with your questions, not your education. I'll put seller videos in our summaries and ask a searcher a question from it to see if they even watched it, more often they have not. Someone asked me a question yesterday about the financials of a very hot off-market deal we have right now that was clearly answered on the second page of the CIM. I'm not going to waste my time with that buyer again when there are 50+ others chasing it right now. Know the brokers preferred communication methods - some like impromptu phone calls, I don't answer my phone, you must schedule in advance thru our automation. Be upfront and realistic about your capital plans, transparency and honesty is the best policy here. We can sense when you say you have the money but you really don't yet. Talk through your mutual LOI preferences, early. Ask the broker for advice. And then be ready to move faster than comfortable when you find something unique - it will be competitive and analysis paralysis will keep you out of the game. Save that for DD.
It's a wild wild ride, not for the faint at heart right now, but your life-changing deal and broker is out there. I agree with others that if it takes you 12+ months to find something, you might just be a hobbyist or dreamer. But don't look for difference making brokers, be that yourself. It seems really insane to me that someone with good capital and intentions should have to manually ask around for a 'hidden' broker who just does stuff 'word of mouth'. I know you have to sift thru TONS of garbage out there. Several of us are working to fix that for you all, come prepared and hang in there for now.
from Wayland Baptist University in Austin, TX, USA
Many excellent brokers are available to help; keep looking and talking to those who will listen and show that they value you as a buyer. Those are your allies. Managing the seller, intermediaries, and hundreds of interested buyers can be a daunting task. A broker can spend###-###-#### hours selling a business! Brokers are not your only option, though.
Some things I have observed as a buy-side advisor regarding ETA and brokers:
Brokers tend to prioritize private equity firms, repeat buyers, or strategic acquirers with a track record of closing deals. Consequently, searchers may find themselves deprioritized or overlooked entirely because they are usually inexperienced.
• Low Priority: Searchers are frequently perceived as “tire kickers” or unproven buyers, leading brokers to prioritize them at the bottom of their list.
• Credibility Issues: Even competent searchers with investor backing are often misjudged as lacking credibility. Many have proof of funds, but they can't demonstrate transferable skills into the company they are looking to acquire.
• Limited Deal Flow Control: Brokers do not typically enable proactive deal sourcing, leaving searchers at a disadvantage who rely heavily on brokers for most listings.
• Generic Listings: Searchers spend significant time on low-quality deals that fail to meet their criteria. Some listings are outdated or represent businesses that many buyers have already rejected.
• Intense Competition: Searchers need fair and quality deals but often face competition from buyers willing to overpay and those who have a deeper bench with getting deals done.
• Transactional Nature: Brokers prioritize transactions over relationships, whereas ETA deals thrive on relational dynamics. Relationships win off-market, proprietary deals.
Searchers who present a clear investment thesis, demonstrate proof of funds, and communicate professionally tend to gain more traction. Building rapport with boutique or industry-focused brokers and treating them as long-term partners can open doors to better opportunities and more substantial networks.
Volition Business Advisory Services is a boutique M&A advisory firm based in Austin, operating across the U.S. We serve both buyers and sellers and have recently launched a deal flow program to assist ETAs in connecting with sellers, brokers, intermediaries, and other partners to acquire businesses.
There is a ton more to share on this topic, but this should help those who are struggling to connect. I would be glad to discuss this topic further if anyone has any additional questions.
-BA