Is it better to talk to brokers after you have a board for that particular industry?

searcher profile

August 22, 2024

by a searcher in Queens, NY, USA

Is it better to talk to brokers, who are helping business owners sell, when you have your own board for that particular industry?

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commentor profile
Reply by an intermediary
from Rochester Institute of Technology in Toronto, ON, Canada
Okay, so while in theory, the board can give you credibility that you may lack, in reality, I just had a weird experience with a group that supposedly has a board consisting of incredibly connected and experienced individuals, including a former high-ranking politician and who is who of that industry, but when I spoke with them and dug a little bit more, I found that they don't have committed capital, their organization doesn't have a budget or pays salaries; they're just kind of loose group connected to some guy who looked like he was having a meeting from his mother's basement, and worse, the individuals that were in a meeting turned out not to have a basic idea of how the regulations in the industry work, because it's a heavily regulated industry and newest issues with those regulations and so on and so on, which is telling me just having board on its own doesn't mean much.
commentor profile
Reply by an intermediary
from University of California, Irvine in San Diego, CA, USA
One of the reasons also is if you are rigid with your industry, you are going to be less likely to find a business to buy. I am not saying buy anything but a lot of searchers do not find a business to buy. Look at the Stanford Search Fund study for stats. Point is you are actually better off with industry consultants as you find a business you want to buy. Unless you are going to be VERY specific and assemble a board because you won't buy anything but what the board is experienced in. You might be limiting yourself.
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