Is it common practice for searchers to use business brokers?

searcher profile

September 05, 2020

by a searcher in Austin, TX, USA

Hi All,
I'm new to searching. Is it common for searchers to work with business brokers? If yes, does this practice tend to become less common as the searcher develops more sources?

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commentor profile
Reply by a professional
from Georgia Institute of Technology in Atlanta, GA, United States
Searchers do work with brokers and see good results. One plus with working with brokers is they have the deal ready for closing and have already convinced the business owner on its valuation. When you deal with the business owner directly, you have to do convincing part and show them why their business is worth what it is. It is not always an easy task as most business owners have personal attachments to their business.
commentor profile
Reply by a searcher
from Temple University in Philadelphia, PA, USA
As mentioned in other posts, you should be working with brokers, but they should only represent a small portion (~20%) of your searching since their deal flow is hit or miss. If you are searching based on geography, they become more useful to gauge the market and likely will have other resources like lenders, accountants, and lawyers which you may find useful.
commentor profile
+3 more replies.
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