Buy-Side Broker Experiences

searcher profile

March 01, 2024

by a searcher from Stanford University - Graduate School of Business in Dallas, TX, USA

Has anyone had any firsthand experience with buy-side brokers and able to share insights? If so, would you also be open to recommending a broker?

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commentor profile
Reply by an intermediary
from University of Wisconsin in Milwaukee, WI, USA
I would recommended groups that have buyside experience in the industry you are targeting. Two benefits: (1) they have background industry knowledge and will be given more credibility when talking to potential sellers. This is a major benefit for industries where business owners are reached out to often (2) Less important but still a benefit- they likely already collected data on businesses and their owners. While the list may have owner's who previously "passed" on selling, things change with time, and you may have different criteria than the previous retained buy side client
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Reply by an intermediary
from University of California, Davis in Reno, NV, USA
Thanks for the mention @Luke Tatone.

My first question would be to ask you what you're hoping to get from the buy side broker? Is he/she going to engage in an active search for an opportunity, or have you already identified an opportunity and you just want an experienced hand on your side work through the transaction/offer ideas on values? If you're engaging them for a search, they would need to be paid for their time and expenses; they may invest a lot of time and effort into identifying an opportunity that doesn't go through because of a personality conflict b/w buyer and seller (for instance).

Depending on where you find your opportunity, you may need to use a broker that is appropriately licensed in that state; 18(?) states requre business brokers to have a real estate license to practice there and a few have additional licenseing to be a business broker (NV and AZ do, there may be others),

The RE licensing MAY be mitigated if the broker has a securities license, but I have never practiced outside CA and NV (where I am appropriately licensed), so it's never been an issue for me.
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