Trigger warning: the following article will make frequent use of the word "broker".
Business brokers have a tough reputation amongst buyers. Sure, there are bad brokers out there. But the same applies to lawyers, accountants, bankers, and sword swallowers (although they tend to have shorter careers).
The reality is that a good business broker can make the business-for-sale process better for both buyer & seller. The only problem? Buyers will always see a conflict that a broker earns a larger commission if the business sells for more money.
This misalignment of incentives creates an unnecessary barrier to completing a transaction. This got us thinking - there has to be a better way (pardon the cliché).
Our solution? The Deal Manager.
What is a Deal Manager?
A Deal Manager is a professional dedicated to helping both parties close a deal. Deal Managers operate on a fixed salary + a quarterly bonus, which keeps them economically aligned to both buyers & sellers.
This means that whether a business sells for $1M or $800K - Deal Managers earn the same amount.
What does a Deal Manager do?
When a business sells with DealBuilder, they get access to a dedicated Deal Manager. Deal Managers support Buyers and Sellers the following ways:
- Business valuation - the Deal Manager helps the Seller input their financial information into our market-based valuation tool. Note: the Seller sets the final asking price, not the Deal Manager.
- Business Presentation - Deal Managers help Sellers create concise and compelling presentations for Buyers. The goal of the presentation is to provide all the details a Buyer needs to make a go-forward decision (here's an example).
- Submitting Offers - Deal Managers help Buyers submit offers by providing templates & resources to explain standard industry terms (such as vendor notes and earn-outs).
- Financing - Deal Manager can help Buyers secure financing.
- Managing the Deal Process - a Deal Manager's biggest responsibility is managing the deal process. For example, coordinating due diligence and meeting deal deadlines. Overall, Deal Managers are there to get a deal across the finish line.
What does a Deal Manager NOT do?
- Negotiate Deal Terms - Deal Managers will answer your questions, but won't negotiate on your behalf. Specific deal negotiations are between the Buyer and Seller or through their lawyers.
- Represent the Seller as an Agent/Broker - a Deal Manager does not represent a Seller in any type of agent capacity. Deal Managers are not compensated like Brokers because they are not Brokers. Deal Managers are there to make the deal process more efficient.
- Attend In-Person Meetings - as much as they would love to see you in-person, Deal Manager's work remotely.
- We do not provide legal or tax advice - we leave it to the professionals. Don't have a corporate lawyer or accountant? Don't worry, we have a directory of vetted professionals we can refer you to.
Still not sure how a Deal Manager differs from a regular Business Broker? Below is a fun T-Chart:
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