Buy side broker for proprietary deal

searcher profile

May 21, 2019

by a searcher from University of Pennsylvania - The Wharton School in San Francisco, CA, United States

I have a host of proprietary deals which range from 1.0M - 2.5M of EBITDA. I would like to move them through my funnel but am spending a lot of time educating the sellers on terms and basic valuation principles. 

Have any searchers worked with a buyside broker on a proprietary deal in which a sell side broker was not involved? I’m thinking of someone who could serve as a exclusive ermediary and put it up as a listing if we don’t take a bite at the deal.






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commentor profile
Reply by a professional
from University of Southern California in North Palm Beach, FL, USA
I am not a broker but I advise buyers. I don't sell or represent businesses for sale.

Nearly all of my clients buy companies that are not represented by brokers. The companies are for sale by-owner or we discover owners willing to sell when I or my client introduces the client to the owners via search.

Be very careful if you intend to use a broker who also can "take a bite at the deal."

You can email me privately if you want to know more about this.
commentor profile
Reply by a searcher
from Simon Fraser University in Hong Kong
I've found that the process isn't easy but I'm working on a few deals at the moment and it's been a lot of seller education, that said, you can and I think should be setting the expectations. This has worked well for me in the past and I'd encourage you to do the work - at closing you're the one at a much lower entry.
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