I've been on both sides of this. Sold my first company with a broker who had an MBA from a top school and zero deals under his belt. Absolute waste of six months. Second time around, hired a guy who'd never finished college but had closed 40+ deals in my industry. Night and day. The degree didn't mean squat when it came to navigating the actual negotiation. Just curious if others have seen the same.
Brokering
Why deal experience beats corporate degrees in brokering
100%. I don't care if you have a Harvard MBA, if you haven't been in the room when a deal falls apart over a working capital adjustment, you're useless to me. The classroom doesn't teach that.
Eh, I think it's a false dichotomy. The The best broker I ever worked with had both. I get that a degree alone doesn't mean much, but the structured thinking and financial modeling skills don't hurt.
Financial modeling is table stakes and any decent deal guy can do it. It's the soft skills and the gut instinct from reps that actually close deals.
My broker's resume was basically his entire career in my niche. Knew every competitor, every potential buyer. No degree listed on his website at all. He got me 3x what I expected. The guy with the fancy diploma quoted me a number based on a spreadsheet formula.
sandwich_enthusiast exactly my point. The guy with the formula didn't even know who the natural acquirers were in my space. He kept trying to pitch private equity firms that had zero interest in a company my size. The experienced guy had a shortlist of strategic buyers ready before we even signed the engagement letter.
I think you're both overcorrecting a bit. Sure, experience wins. But I've met plenty of 'experienced' brokers who were just guys with a rolodex and zero process. They're a different kind of disaster.
mike_in_cedar that's a fair point. Experience without discipline is just... old habits. Some of those old-school guys still think a handshake means more than an LOI. Actually no, I take that back. The handshake guys are the worst.
I once had a broker who put 'deal experience: 15 years' in his bio, but when I asked for references he gave me a 3-page document. Three pages. Of references. From people I'm pretty sure were his golf buddies
How do you even vet the experience though? Everyone claims they've closed deals. Do you ask for a track record of completed transactions? Signed proOf?
jane_doe_1234 yes, but you also want to tallk to past clients. Ask specifically what the broker did when the deal hit a snag. It's a lot harder to lie about the messy stuff.
Also look at deal size and industry. Closing 40 deals in industrial services doesn't mean you can sell a SaaS company. 'Deal experience' isn't one thing.
All good points. I've also found that the experienced guys who've actually closed deals are often more honest about value. The guy with the MBA tried to overpromise on valuation and then backpedal—the experienced guy said 'here's what I might try, but be realistic.' I trusted him more for it.
I think degrees matter a lot for sellers who are nervous and want 'credibility' on their side. It's a perception thing. But for actual close rates? Give me the guy who's been through the fire.
the_exit_strategist spot on. Half of this job is holding the seller's hand. MBA doesn't teach that. Or maybe it does? 'Advanced Hand Holding 401'
So what I'm hearing is: hire experience, but verify it actually matches your situation. And don't assume a degree means they can negotiate. Seems obvious but the market is full of people selling the opposite.
Quick question—do these 'deal guys' have a formal certification or is it just vibes and a LinkedIn profile? Asking for my own sanity