Hi Monkeys, I'm in a role where I'll be going to to market to network with brokers in the hopes of getting some on- and off-market deal flow. I'll of course keep the conversation going after the market visit but wanted to leave them with a small memorable gift to positively remember us by. Something where they're like "oh yeah that's from that guy at [My Firm's Name], we like that". I feel like wine is cliche and I'm not a wine guy either, so don't want to risk giving a bad wine out. I've heard of people giving bottles of Dom Perignon but that seems excessive. Any suggestions? Ideally something small (and that TSA will allow on a carryon!)
Thanks!
My opinion is that this would be super weird to do on the first meeting with someone. That said, always a fan of sending peaches or citrus to folks, but I'm from the southeast and actually know some of the farmers so it is a little less weird. People seem to like it, and it is something their entire office can use.
Peaches/Citrus sounds like a great idea. I'm covering the SE, so maybe it won't be that awkward. Thanks!
My opinion? Its weird to send brokers gifts. Their job is to bring buyers to their clients. If your firm has meaningful capital to deploy, your goal is to show them you guys are serious about the market, educate them on what your target investment looks like, and then follow up periodically to stay in touch. They will reach out to you.
A gift isn't going to get you off market deals. You're going to have to show them you can transact through on market opportunities first, and then they'll start to bring you the off/semi-off market stuff.
Please do not give gifts
The gift was giving them business. Clients don't usually purchase gifts for the people providing them services.
Also, if a broker had the deal, it was not "off market" by definition. Unless said broker only showed you and no one else, in which case... well, just another bit of evidence that brokers are scummy.
To be fair - brokers do offer some semi-off market opportunities. The top brokers will have sellers who need a quick process come to them to approach one or a very select few target buyers on their behalf. If it's explicitly asked for by the client then its not scummy.
Plenty of times somebody just needs an asset off their books ASAP and only wants to go to qualified buyers, or wants to start with the most likely buyer directly, but don't have the connections themselves to know who to approach.
But by the very definition, this is a marketed approach. If I was a Seller and my broker said "you don't know anyone in this space, but I know the perfect buyer" I'd say "why only 1, doesn't seem very competitive?"
And if my broker was showing 4 groups, then that isn't "off market" because I'm still competing for that deal. Once a broker touches a deal, by definition it's almost certainly not "off market". That's a buzzword
All fair points. My thinking was to create a good impression and to be top of mind. I'm glad I asked. Thanks!
Don't get them gifts. It will come off as try-hard.
It may sound cliche, but frankly what I've found the best creator of good impressions is just being down-to-earth, personable, and able to talk about more than just the deals/market. Be a good, patient listener who isn't just waiting to talk shop/get what you want and engage in genuine conversations with them.
Show them you're a cool person who they'd actually want to grab coffee or a beer with outside of a work context. Joke with them. Talk about things you've enjoyed and hear about theirs...books, podcasts, concerts, travel, etc. Ask about their family and how they got into the business.
The biggest one IMO though? Ask about their hobbies and passions. I can't tell you how many random broker conversations I've had where we find out we both mountain bike, are into audio systems, do photography, shit even met a guy from TX who also windsurfs. It's an instant connection and builds a bond that you'd never get having a strictly-business conversation. After the fact, I can call up any of those guys and know they'll not only take my call, but actually want to help me out with business that would be mutually beneficial, all while being easy to get along with/enjoyable to be around. Goes a long way for trust as well when you haven't done any deals with that broker, market, etc.
Had several conversations towards the end of NMHC where brokers were legitimately thankful to not have the same fucking cookie-cutter business conversation that they've already had 87 times over the course of the conference. We joked and got to know them, and sure, we eventually told them what we're looking for WRT deals, but the connection had already been made and they've enthusiastically taken every one of my calls since, along with some early looks at deals in markets we haven't transacted in.
One podcast that is great for connection-building/general social dynamics is called The Art of Charm. It helped me immensely many years ago when it came to dating, but it's branched out a ton into other social situations and they have amazing guests on leadership, networking, forging genuine personal and professional relationships, teamwork, mindfulness, peak performance, etc.
Be cool, serious, and execute. Nobody cares about your bottle of wine and it will make you look weird. Brokers want to do business.
As others have said, gifts are weird.
It’s a funny dynamic, because ultimately brokers and principal side folks both need each other. They want good deals/intel and we want their business.
When my team has off-market deals, we have a close circle of groups we’re particularly close with that are our first call. They can always engage other brokers but we can always bring opportunities to other shops.
Assuming your shop is not a super well known commodity (big name changes the dynamic) then just have a conversation to compare notes on what you’re seeing in the market, some background on your shop, and share what you’re looking for. You won’t be their first call since they already have their close relationships, but if those groups pass on something and your group transacts, then you’re in the inner circle.
The brokers I work for don’t even know where half the gifts they get are from. They open the boxes and hand out the bottles of wine (no matter how nice) to the support team. Also, I disagree with the couple guys saying off-market means showing to one person. We have had plenty of situations where we select 10 groups to show a deal to and the info is only shared with them. Yes, it is technically marketing process, but it is not “on” the market for anyone to look at. These are groups my brokers have worked with on many deals and know their ability to transact. If you called asking about off-market deals, and they had one of those select-group deals, they wouldn’t even hint at it to you regardless of what you said to them.
What they’re more likely to show you is the “re-fried beans” deal that didn’t transact six months ago when they marketed it, and they still have the listing, so they’re fine with you taking a stab at it. I’d say this isn’t really “off market,” and that you want to be in the first scenario I described.
Thanks all! Excellent advice.
In rerum animi quia nesciunt voluptatum dolorem culpa repellendus. Tempore nostrum illum et numquam ratione adipisci recusandae. Beatae qui nulla et voluptatem aut. Quod doloremque rerum aut voluptatem et dolorem ratione. Et praesentium fuga quae quae. Quos error voluptatem quis voluptatibus sed voluptatem.
Quia itaque laborum aut quo est maiores facere quia. Ea numquam nobis maiores iusto quia vel accusamus et. Non eum quod natus. Ipsum ex doloribus aperiam rerum qui enim.
Aut tenetur totam rerum a enim beatae. Minima consequuntur tempora quisquam aperiam cupiditate debitis. Aut enim aspernatur error qui sed autem ducimus. Magnam dolores consequatur numquam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...