Self-funded searchers in Florida - working with brokers

searcher profile

July 15, 2021

by a searcher from Babson College - F.W. Olin Graduate School in Boston, MA, USA

Hey Everyone!

Looking to connect with self-funded searchers in Florida in regards to working with Brokers in these regions. For smaller deals (below 1m SDE/EBITDA), the norm seems to be to skip the LOI and go straight to APA and an Escrow payment and wondering how people navigate this hurdle?

Be great to connect with people facing similar!

Cheers,
Robbie

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commentor profile
Reply by a searcher
from The University of Michigan in 1075 Gills Dr, Orlando, FL 32824, USA
^redacted‌ I acquired my business in Orlando 3 years ago so it's possible the market has shifted since then. I always submitted an LOI first and was never asked to go straight to APA. The purchase agreement is pretty detailed so it would be challenging to go straight to that, and it would also require you and the seller to invest more time and incur legal fees. That seems inefficient to me. I was asked for an escrow a few times but I never did it. This was typically from sellers who were used to selling real estate where escrow is common. I discussed it with my lawyer and he said it can be done in a way that really reduces your risk so if it was the right deal I probably would have done it. Lastly, like everywhere, there are a lot of unsophisticated brokers that will ask for all kinds of odd processes and/or terms. When you're dealing with one of them, I think it's best to walk away and avoid that broker in the future.
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Reply by a searcher
in Tampa, FL, USA
Just one self-funded searcher's opinion here but I get really nervous when I hear no LOI, straight to APA, and need Escrow in place to move forward. I personally have run from every one of those "opportunities" so far. Probably one of the only situations where straight to APA will occur is when a strong existing relationship and prior knowledge of the business exists. If helpful, Dane Desantis is a top-notch broker in the south FL area if you need to work with someone that is on the up and up. Happy to chat further - I am located in the Tampa area. Email is redacted
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