Contacting sellers of brokered companies directly

May 18, 2021
by a searcher from Northwestern University - Kellogg School of Management in Philadelphia, PA, USA
Does anyone have experience with contacting sellers of brokered companies directly? The broker is very encouraging when we do speak that I am the front runner and the seller really wants to sell to me, but is also extremely slow to respond and full of excuses why he is not getting me the information needed (after he says he will). I am considering reaching out to the sellers directly, not in an attempt to cut the broker out, but rather to see if I can move this along which I believe to be in all our best interests. What do you think?
from Wake Forest University in Winston-Salem, NC, USA
1. Check your NDA/CA, you could be in violation by contacting the seller directly. And even if not a written requirement, not good form, but... (see #2)
2. Ask for the broker to set up a conference call with all three of you to check in on the timeline, to-do items, expected turn times, etc.. This will also give you a sense of the seller's motivation. They may just be overwhelmed at this point (due diligence, particularly if on the longer list side of things, can wear out a seller while they are also trying to run the business). Corralary - always good for personal reflection: are the buyer requests clear, concise, need to have items easily obtained, or long, unorganized, curiosity items that are hard to put together and really don't impact the go/no go decision?
3. It may not be the broker, they may be waiting on the seller or the seller's CPA for information, but like a good broker, they are taking the heat and not throwing their client under the bus.
from Southern New Hampshire University in Boston Metropolitan Area, USA