Listed my 12-year-old HVAC company on a couple of the big marketplaces three months ago. Every single inquiry has been either a tire-kicker, a broker fishing for a listing agreement, or an outright scammer. One guy sent a "proof of funds" letter from a bank that doesn't exist. Another wanted me to pay a $5k "due diligence deposit" upfront. Is this just how it is now, or did I pick the wrong platforms? I'm not desperate, but I'm starting to think the whole online listing thing is a waste of time.
Scam Leads
Why did every lead on my listing turn out to be a scam?
The "due diligence deposit" one is a classic. They count on you being far enough along to ignore the red flag. Did you reverse image search their profile? Half these guys use stock photos.
I got the same bank letter scam. Called the bank directly. They laughed. Not a customer, not a real routing number. It's wild out there.
Marketplaces are mostly lead-gen for brokers now. You're the product. They want your listing so they can shop it to their buyer list, not actually buy your company.
Yeah, I'm figuring that out. One "buyer" turned out to be a guy who runs a competing HVAC outfit two counties over. Wanted my customer list under the guise of "synergy evaluation." Blocked him.
Synergy evaluation lol. That's a new one for me. I've only gotten the "I have a private investor group" line. No name, no fund, no website. Just vibes.
You need to qualify them before you even send the NDA. Ask for their last two deal references and the name of their lender. If they balk, they're not real. Scammers hate specifics.
It's not just online. I had a "buyer" refeer himself to me through a mutual acquaintance. Turned out he was a broker trying to get a double dip. The whole lower middle market is full of people pretending to have capital.
BlueCollarBaller's advice is solid. Also, make them sign an NDA with a liquidated damages clause before you hand over anything. Cuts the tire kickers fast.
I had one guy ask if he could "shadow" me for a week before making an offer. No NDA, no proof of funds. Just wanted to see how I ran jobs. Pretty sure he was scouting for a competitor.
The scouting thing is real. I cught a "buyer" taking photos of my equipment serial numbers. When I asked why, he said "for asset verification." I told him to verify his way out the door.
DuctTape, that's borderline espionage. I hope you didn't let him.
This is all making me feel slightly less insane. I thought maybe I was just being paranoid. But after the fake bank letter and the guy who wanted my customer list, I started keeping a spreadsheet of red flags. It's a long list.
A spreadsheet is the right move. Also, consider that some of these marketplaces have zero vetting. They get paid per lead or per listing, not per closed deal. Their incentive is volume, not quality.
If you want to bypass the noise, talk to a business broker who works on a success fee only. They'll vet buyers because they don't get paid until closing. The upfront fee guys are a different story.
Or just sell to your employees. I know, easier said than done. But every "buyer" I've dealt with online has been a waste of time. At least my guys know the business
Employee buyouts are great until they can't get financing. Then you've shown your hand and morale takes a hit. Ask me how I know.