Question List for First Proprietary Meeting

January 21, 2021

by a searcher in New York, NY, USA

I have my first - first proprietary lead owner meeting coming up. Does anyone have a checklist of questions I should include they can share?

Thank you!

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Reply by a searcher
from Harvard University in Colorado Springs, CO, USA

With proprietary search, the vast majority of your meetings will be with businesses that don't fit your criteria or aren't really for sale. Ask about their "journey" which will 1. help you figure out if they're actually selling their business and 2. will give you information about their businesses (revenue, employees, margins, etc.).
You might think of your goal as to "get to a no" as quickly as possible. If you are trying your hardest to get information that will kill the deal in the first conversation (without being rude, obviously) and still can't do it, then it's probably worth putting more thought into it. A good searcher I'm friends with says she's talked to hundreds and ends most conversations within 15 minutes. That's not my style, but I've leaned on intermediaries, so I already know that the business is for sale and that the business fits my criteria.
Also, you probably will just have to do a few of them before you feel comfortable, so don't beat yourself up if you think it goes poorly.

Reply by a searcher
from Harvard University in MG9V+6H2, Guatemala City, Guatemala

I don’t have a list handy, but I think the questions should be focused on the obvious/dealbreaking/first pass filters of the business you are searching. Things like: 1) Size of business (sales, EBITDA, employees) 2) lines of business and % of revenue 3) # of clients and concentration 4) % recurring, repeat, one-off revenue 5) COVID impact on business, 6) Commitment to sell, etc etc. The objective of the meeting should be to validate that it is a business that is worth pursuing and spending your time on. Leave the meeting knowing whether the business fits what you are looking for and whether there is interest and clear next step with owner to continue conversation.

Expect some owners to be dodgy on some questions before signing an NDA, but be prepared to ask questions in different ways to get directional answers to help you filter (eg, “I am looking for a business that has EBITDA of $1M” vs “What was your last years EBITDA?”)

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