Unlocking Deal Flow: How to Partner with a Business Broker To Close More Deals

Now before you think we’re bashing brokers—this article was written by one 😂

We're here to tell you that business brokers are not blockers to a deal. In fact, they can unlock better deal flow when you partner with them effectively.

In this article, we'll break down the best ways to work with a broker to overcome deal complexities, connect with the right people, and close more deals. Let's dive in.

What does a Business Broker do?

Business brokers are like matchmakers for entrepreneurs. They connect buyers and sellers, streamline negotiations, and ensure transactions go smoothly. But their value goes far beyond introductions. Here’s a few ways they add value for buyers:

• Access to Off-Market Deals: Brokers often have insider knowledge of businesses that aren’t publicly listed for sale.
• Valuation Expertise: Experienced and specialist brokers can quickly assess whether a business's valuation multiple aligns with industry benchmarks. Build relationships with brokers to tap into this expertise when evaluating potential deals.
• Negotiation Skills: Good brokers will play devil's advocate with sellers when you have legitimate counterpoints during negotiations. This is an extremely underrated benefit of working with a broker versus speaking to sellers one-on-one.
• Transaction Management: From due diligence coordination to managing legal paperwork, they handle the details so you can focus on the big picture (plus the million other to-dos that come with buying a business).

Why is deal flow important?

It's no coincidence that the best business buyers have the best deal flow. Take Warren Buffett—his reputation and network have created an unparalleled deal flow where companies actively seek him out for investments, giving Berkshire Hathaway first look at the best opportunities.

Remember: deal flow is a game of quality over quantity. Here are some tips on increasing the quality of your deal flow when working with a business broker.

How to work effectively with a Business Broker

Morgan Tate, founder of Breakwater M&A and business broker, notes that most buyers fail to leverage brokers effectively. Here are the three biggest mistakes to avoid:

Mistake #1 - Generic acquisition criteria

There is nothing worse than an email blast from a Search Fund with generic acquisition criteria. Instead, get specific about the deals you’re interested in:

• Your budget and financing capabilities
• Target industries and ideal company profile
• Geographic preferences

The Wrong Approach:

"Hey - got any good businesses for sale right now?" (Don't be this person.)

The Right Approach:

Research your target market and craft personalized outreach. Here's a winning template:

***"*Hey [NAME],

I'm looking to acquire a Managed IT Services Business with $250,000+ EBITDA in [location]. I can act as CEO post-closing and have [amount] available for the right opportunity.

Can we chat this week? I often encounter sellers outside my criteria and would love to refer them to a trusted broker like yourself."

That closing line is key (only use it if you actually have sellers to refer) - this will guarantee you a meeting with any broker or M&A advisor.

Mistake #2 - Working with the wrong Brokers

Partner with brokers who have:

• Industry Expertise: Deep knowledge in your target sectors
• Proven Track Record: Success with similar transactions
• Strong Networks: Access to quality deal flow

While buyers often complain on Twitter/X about rude and unprofessional brokers, every industry has its bad apples. Rather than dwelling on negative experiences, focus on finding the best brokers in the industry who specialize in deals within your target zone.

Mistake #3 - Being unprepared

Before starting your search, have these ready:

1. Financing Strategy: Secured funding or pre-approval
2. Due Diligence Plan: Clear evaluation framework
3. Professional Team: Legal and financial advisors lined up
4. LOI Template: Ready to move fast on good opportunities

Remember: preparation and specificity are your best friends in the acquisition process.

Unlocking more value through Business Brokers

Here's where things get interesting. Beyond just finding deals, business brokers can become your secret weapon throughout the entire acquisition process. Let's break down how:

Let brokers be your deal translator

Selling a business is an intensely emotional process that often leads to irrational decision-making.

Instead of struggling with emotional sellers directly, let a broker serve as your intermediary to keep negotiations objective and professional. This can help with:

• Navigating complex earn-out discussions to reduce your deal risk
• Pitching seller financing when traditional funding falls short (seller’s tend to dislike this)
• All the other small deal negotiation hurdles that come up—such as when a seller wants to take the company Ford F-150 with them as part of the sale proceeds

Due diligence champions

Think of brokers as your deal reconnaissance team. They'll:

• Organize comprehensive data rooms with key documents
• Flag potential issues before they become deal-breakers
• Coordinate with lawyers, accountants, and other advisors

The real cost of going solo

Many buyers believe skipping the broker will lead to a better deal—and sometimes it does. However, pursuing deals without a broker through proprietary search comes with risks:

• Missing hidden red flags during diligence
• Overpaying due to a lack market data
• Wasting time on deals that will never close with sellers not ready to sell

When deciding between a proprietary or brokered approach—choose both. This maximizes your options. Plus, you can always bring in an M&A advisor for guidance on an off-market deal if you need additional support.

The bottom line

Success in business acquisitions comes down to three key elements we've explored: clear criteria, strong relationships with the right brokers, and thorough preparation. By avoiding generic outreach, partnering with industry-specialized brokers, and having your financing and due diligence framework ready, you'll position yourself for better deals.

The most successful buyers understand that business brokers aren't obstacles—they're strategic partners who can provide valuable market insights, manage complex negotiations, and help navigate the emotional aspects of business sales. Their expertise often proves invaluable in spotting red flags and ensuring smooth transactions.

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