Financial Advisor wanting Lehman and 750 for intro broker deal?

February 08, 2023

by a searcher from University of Notre Dame in Cambridge, MA, USA

Has anyone else run into things like this? I find it unethical. Be aware of this guy:

Thanks for contacting us.

You showed interest in Teaser Fab 5 - semiconductor business for sale. That deal is with another broker. To introduce you to them, we charge a $750 upfront fee and a Lehman's on the value of what ever you consummated.

Can I send you an invoice and Agreement to review? Give me a call.

All the Best,

Daniel Wood Managing Principal | CEO

https://www.linkedin.com/in/daniel-wood-53b3b32a/

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Reply by an intermediary
from Pepperdine University in Los Angeles, CA, USA

I've run across groups doing something like this. They act as teaser aggregators and try to charge 1% for any intros they facilitate that result in closed deals (here it is $750 upfront and a Lehamn on close. - seems steep for an mere intro). Guy I talked to was making a pretty good living so there is value there. It is competitive out there and everyone (especially PE groups) are looking for any edge they can find and want to be sure they see all deals,. There are so many small bankers and brokers out there that it is difficult to keep track of them all.. By far, most decent deals are not going to be posted on business broker listing sights. - so no...in most cases you will not find these on your own - unless you've done the work to build up a huge network of the thousands of brokers, M&A advisers and ibanks out there and you think they are showing you all their deals. (not likely). I don't really like what these people are doing, but they seem to be filling some hole in an inefficient market.

Reply by a professional
from Simon Fraser University in Toronto, ON, Canada

There should be no need to pay upfront to view a Teaser. Unfortunately we see all sort of schemes (noise) dependent upon the country, size of the opportunity, or type of intermediary. Given the rise of organizations and listing sites (Marketplaces) that scrape the web, post listings and charge subscriber fees to see listings. Personally, I wouldn't characterize the scheme as unethical, however I think that in a competitive environment of intermediaries (Brokers, Advisors, Digital platforms) the business practice isn't scalable. Our Entrepreneurship-through-acquisition program is intended to aid serious acquirers/buyers by cutting through just this sort of noise https://shaughnessy.group/entrepreneurship

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