I'm getting ready to sell my construction supply company and I'm overwhelmed by the broker search. Every Google result looks the same. For those who've actually sold a business, where did you find your broker? Any specific directories, associations, or referral sources that worked?
Brokers
Where do successful business owners recommend finding brokers?
I found mine through my CPA. He had worked with a few M&A advisors on client exits and gave me two names. One was a terrible fit, the other was solid. The personal referral made all the difference.
IBBA is a good starting point for directories. But honestly, most of the good brokers I talked to weren't advertising heavily. They were busy with existing clients.
Following. Same question.
I used a business broker from a regional firm that specialized in my industry. Found them through a trade association newsletter. That was 8 years ago and the firm has since been acquired, so not sure I'd have the same luck today. But industry-specific associations are underrated for this.
Trade association is an angle I hadn't considered. I'm in a niche enough space that a generalist broker would probably struggle.
Don't jsut look at directories. Call a few and ask how many deals they've closed in your sector in the last two years. Most will dodge the question. The ones who answer directly are usually the real thing.
I'd push back on the idea that you need a broker at all. If your business is big enough for a proper M&A advisor, fine, but for smaller deals a good attorney and accountant can get you through. Brokers take a big cut for what is sometimes just networking.
That's a fair point but a good broker also manages the process, keeps buyers honest, and knows how to market the business without leaking that it's for sale. Not every owner has the stomach for that.
Second thee CPA referral. Also ask your commercial banker. They see deals constantly and often know which brokers are competent and which ones just churn listings.
One thing to watch: some brokers will tell you whatever you want to hear to get the listing. Ask for references from sellers they've represented, not just buyers. Different side of the table.
Appreciate the banker suggestion. I have a decent relationship with our commercial lender. Never thought to ask them. I'll set up a call this week.
No single directory is reliable. Get three referrals from different sources, interview all three, and trust your gut on who actually understands your numbers.
And get everything in writing. Commission structure, tail periods, termination rights. The referral source matters less than the contract.