Hello all,
I am currently searching for a small business in the wholesale/distribution realm preferably in building material or construction and I would also consider other B2B distribution businesses.
I am at the stage of understanding what I can afford on my own and also building a plan to research, identify, and contact small businesses that fit my search. I am doing this while also working my current full-time job. I have been told that utilizing buy/search firm to essentially do this outreach for you is another good option. It seems many of these also do due diligence. I am unsure of the fees associated with this work but with me being a first time buyer, it seems enticing. What has your experience been with these types of search firms or consultants?
Any feedback is appreciated!
Buy/Search Firms - Are they worth it? Any Advice?
by a searcher from Creighton University - Heider College of Business
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We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
These are typically very low margin businesses with very little differentiation. Their low capital intensity has made them pretty attractive to PEs which have sponsored some of the largest consolidators in the space... That might result in larger multiples for your targets.
You can look into Azelis, IMCD, DKSH, Caldic and Brenntag for more info on the space... Happy to answer any other questions you might have.