Working with a sell side broker, but want to reach out to the seller

searcher profile

November 05, 2024

by a searcher from Purdue University in Windsor, CO, USA

Hi all, I am looking for some opinions. I am a self-funded searcher who has found a deal I’m interested in. I spoke with the broker and have received the financials. The broker said he’s had a lot of interest and I would like to set up a conversation with the seller asap. The broker has been slow to respond and I wanted to get some thoughts on reaching out to the seller directly? Good idea? Bad idea? Why?

Thanks!

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commentor profile
Reply by a searcher
from Grand Valley State University in Detroit, MI, USA
Go through the broker - unfortunately, despite the business being attractive, it's possible the deal either (a) does feature a high degree of competition, and your chances of closing (at the right price are low and / or (b) the broker is going to be difficult to deal with throughout.

You're going to have to sort through a lot of deals, so be confident in being decisive about moving to the next one if it's not lining up in the right way.

If you aren't willing to walk away, and the broker doesn't respond, you can send in an IOI subject to getting more information and talking with the owner directly. Odds are that the seller sees that and if your preliminary number is high enough, they may push the broker to get back to you.

Lastly, feel free to message directly and if we happen to have a relationship with the broker we could provide a nudge.
commentor profile
Reply by a searcher
from University of California, Berkeley in 美国加利福尼亚圣克拉拉
Some brokers hesitate to let buyers talk to the owners to avoid overwhelming contact with the owner and many other reasons. Below are the steps you can take to push the meeting with the owner.

1. Review the CIM and do your research on the industry.

2. Come up with a question list that is not covered in the CIM but is important to the business.

3. Schedule a call with the broker to go over your questions. This will show that you're a series and qualified buyer. Then there is more chance to get the owner meeting. Also, the broker may not be able to answer some of the business detailed questions, which is also a good chance to ask for an owner meeting.
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