How do you motivate brokers without signing an exclusive agreement?

November 18, 2024

by a searcher from Peru State College in Lincoln, NE, USA

I often see advice to "reach out to local business brokers and build relationships."

Coming from the real estate industry, I understand the buyer agent model, and I know that I personally don't want to send great off-market opportunities to buyers who won't commit to working with me. Those go to my committed, loyal customers.

How is the business broker world different? Do you just email them your criteria and say, "Keep me in mind"? Does that work?

I know I'll be much more effective creating deal flow for myself so I'd rather maintain the independence. That said, I know brokers will be out there organically getting deals, too, and I don't want to wait til they hit bizbuysell to see them.

Do you have any experience insights on how to work with brokers and motivate them to send you deals... without putting a ring on it?

For reference. I am in Nebraska, and there are only 20 or so brokers, so it's a small market.

Reply by an investor
from University of California, Santa Barbara in Los Angeles, CA, USA

Hey. Just to make sure I’m understanding, you’re asking as a buyer, how you stay top of mind with a biz broker without signing some sort of exclusivity. I’m a broker. I have buyers reach out all the time with their criteria and ask if we have anything on the market or coming that fits. That is a good start. I have told every buyer they are free to check in with me to see what’s coming down the pipe. No one ever calls to ask. Which I think is interesting.

The tough part for us is that even if we have a perfect fit, I’m not sure I’m doing my fiduciary duty to the seller if I only go to one buyer. Unless it’s a great offer.

so in conclusion yes email them and “keep me in mind,” but also call them once in a while and see who the good ones are that are actually responsive. Keep in touch with those. Otherwise bizbuysell or direct mail or cold emails to owners.

Reply by a searcher
from University of Pennsylvania in Bloomfield, NJ, USA

Thanks for the tag, ^redacted‌. ^redacted‌, I coach that assuming you are speaking to the appropriate Broker, be clear on and direct about your investment thesis, articulate that you are building a pipeline of deals and seeking to close within a certain timeframe. The right Broker relationship will align with helping you source deals so that you can both win.

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