Ghosted by brokers?
April 02, 2021
by a searcher from Texas Christian University - Neeley School of Business in Mansfield, TX, USA
Has anyone had experience being ghosted or flat out ignored by brokers? I am genuinely interested in three businesses and reached out individually on each three, sent a follow up email, and received no response. I just thought it was odd as I would expect a “No” at minimum.
from The University of Michigan in Bonita Springs, FL, USA
That said, there are a lot of reasons why you aren't drawing the attention of brokers. I receive a lot of emails from individuals looking for businesses every single day. Like anyone else, I will prioritize them and act on them based on their relevance to me. Requests such as, "find me a law firm ASAP" or unreasonable requests such as "I am looking for an absentee business making over $500K -- I have $75K to put down" may fall so far down my inbox by the end of the day they may not receive a prompt response. Or, if I am traveling or trying to get a deal or two closed, a same day response sometimes (infrequently) does not happen.
Easy to respond to phone calls and text messages are often more effective. For example, a phone message or text such as, "I would like to receive additional information on your medical billing company. Please send your NDA to Ryan Morris at redacted or "I am looking for a medical billing company in the orthopedics space, can you tell me if your medical billing company specializes in orthopedics?" will receive a prompt reply. An email stating, "Tell me more about your medical billing company" (it is shocking how many people do not read the description and ask me questions already answered) or "Are you aware of any medical billing companies for sale" when I am not aware of any for sale may not.
Finally, there are many brokers out there who treat the business as a hobby. They aren't committed. This is unfortunate and far too prevalent and we all suffer because of it.
from Université du Québec à Montréal in Montreal, QC, Canada
I'm sorry that happened to you.
My primary language is French, but I will provide feedback and perspective with my best English.
Whatever the content of a potential investor's email, I always respond. Even when the potential investor disqualifies himself/herself from the start by offering something contrary to the offer sought, such as mentioning that they are looking for a 100% seller financing or propose to acquire shares when the opportunity clearly states that it is an acquisition of assets. This type of potential investors will receive a response from us simply indicating that it is not a good fit.
That being said, M&A advisors or brokers, among other things, initially look for potential buyers who show and demonstrate:
1. An interest in the opportunity
2. The reason for that interest (It helps evaluate potential synergy)
3. Their experience
So for your reach-outs, I suggest making sure that your email answers these four questions below, or at least questions 1, 2, and 3:
1) What attracted you to this company/opportunity?
2) Do you run a business? If yes, what business?
3) Have you ever acquired businesses before? If yes, feel free to mention at what cost, but it is not necessary.
4) How will you be financing a deal?
Ensure that your email answers these questions with short sentences so that the email is scannable, and then finish your email saying that you are happy to sign an NDA.
I hope this helps; I wish you good luck in your research.
Stay safe and healthy.
Kindest regards,
Ali