Key Points From the Interview
usiness brokers get a bad rap.
Unresponsive. Bad presentation of listings. Meddle in the negotiations.
Have you considered what brokers think of us, the acquisition entrepreneurs?
Tire kickers. Time wasters. Lazy.
So it turns out searchers aren't the most popular either!
Today's episode will help you NOT be the aforementioned words, and instead be someone brokers want to send deals.
Clint Fiore's my guest.
Clint founded a brokerage that deals with lots of buyers. (He actually positioned his brand to be for buyers: Texas Business Buyers.)
Clint pulled back the curtain for me in today's interview.
3 of my favorite takeaways:
#1 You MUST Communicate Your Ability to Close
If you remember nothing else, remember this:
Ability to close.
Ability to close.
Ability to close.
Brokers have finely-tuned antennae for tire kickers. If they perceive you to be one, expect silence.
You're already at a disadvantage as a searcher versus, say, private equity or the owner of a related business.
So you have to convince brokers, early and often, that you can actually get the deal done.
#2 Always Ask About Off-Market Deals
Don't assume the listings on a broker's website are the only deals he has going.
There is a window of time when a broker is preparing to publish a business for sale, but hasn't yet.
Take advantage of this opportune moment.
If you're talking to a broker about one listing, ask if there are others: "Hey do you have anything else in the pipeline I should know about?"
The broker is likely more than happy to share and get the ball rolling.
So don't neglect to simply ASK.
#3 Searcher Branding & Selling Yourself
Lots of searchers set up a website and fancy name for themselves, like Turning Leaf Capital or something.
Clint is unsure this works.
It might with naive sellers, who are flattered by the interest from (what seems like) private equity.
But others are going to react better by simply seeing a younger version of themselves in you.
So, no clear advice here, other than a reminder:
Being chosen as a buyer is a sales process. You're selling yourself. And as the salesperson for yourself, it's your job to understand what motivates the seller and position yourself to be the answer.
It was an enlightening hour with Clint, and I encourage you to listen to the entire interview 👇
I connected with Clint on — where else? — Twitter, where he's fast made a name for himself.
A few of my favorite Clint threads:
- 18 ways Business Brokers / Sellers will overvalue / inflate the asking price on their SMB business listings for sale
- How to Buy a Business worth Millions with $0 of your own money (yes, the "no money down" angle sounds distasteful but this thread is a great one)
- 16 Tips to Make your SMB Business Investor happy and wanting to keep investing in more businesses with you
Until next time,
August Felker is a 2-time successful searcher — first with a traditional search fund; the second time around, he did a self-funded search.
Today August runs Oberle Risk Strategies, an insurance firm with a dedicated practice group for searchers and acquisition entrepreneurs like you.
If you've got a business under LOI, Oberle will provide complimentary due diligence on that business's insurance and benefits program. A great, no-risk way to get to know August & team.
They love helping searchers; they've worked with hundreds. Oberle is a specialty insurance brokerage for searchers, by a former searcher.
Check out the Search Fund Team at Oberle.