Getting on a broker's radar

The short version

• Brokers hear from many more buyers than will ever close. They decide quickly who is worth their time.
• The buyers who get called back are clear, prepared and easy to work with.
• Lead with your buy box, a pre-qualification letter and a short summary of your background.
• Respond quickly, sign the confidentiality agreement promptly and give clear yes or no answers.
• Treat every broker as a long relationship. The next listing may be the right one.

How brokers see buyers

A broker works for the seller and is paid when a sale closes. Their time goes to buyers who look likely to close. Lesson B4.6 covers who the broker works for.

Most inquiries a broker receives come from people who are curious, not ready. They sort quickly. Your first message decides which pile you land in.

What gets you taken seriously

• A clear buy box. It shows you know what you want. Lesson B1.1 covers it.
• Proof you can pay. A lender's pre-qualification letter, or proof of funds. Lesson B3.3 covers pre-qualification.
• A short background. A few lines on your experience, especially managing people or working in a related industry.
• Your team. Naming your M&A attorney, CPA and lender shows you are ready to move.

How to work with a broker

• Respond within a day. Slow replies signal low interest.
• Sign the confidentiality agreement promptly. Lesson B5.1 covers what you are signing.
• Read before you ask. Brokers notice when a buyer asks questions the information package already answers.
• Say no clearly and quickly when a business does not fit, and say why. A clear no tells the broker what to send you next.
• Keep your word. If you say you will send something by Friday, send it by Friday.

Build relationships, not just inquiries

Brokers often have listings that never reach a website, and they call buyers they trust first. Introduce yourself to brokers who sell businesses in your industry and region, even when they have nothing that fits today. Check in every few months.