They Got Acquired - Know this about hiring a broker

December 15, 2023
​Read on web​

Entrepreneurs often guard their business secrets closely, but Noah Bragg chose to build in public, sharing updates with his Twitter audience as the business grew.

Bragg, a serial entrepreneur and developer, was building Potion, a SaaS tool that integrates with Notion to create websites.

His transparency on Twitter created buzz and cultivated a base of customers. Upon launch, 75 of those observers transitioned to paying customers.

Bragg also launched on Product Hunt – becoming the top product of the week – and grew Potion to $6,300 in MRR (monthly recurring revenue). He did it all on his own, with no team.

In early 2023, he put Potion up for sale on Acquire and sold for $300,000.

See the full story for the details of how he grew Potion and transitioned the tool to a new owner:

​He built a SaaS for Notion in public and sold for $300K​

What you should know about hiring a broker

One of our goals at TGA is to demystify the sale process, including what you should expect from a broker.

We also want to make it easy for founders to find a good-fit broker you can trust, which is why we have a free service that matches founders with brokers.

Here are a few of the most common questions we get about brokers...

Is a broker the same thing as an advisor?

Generally, yes. Many brokerage firms use those terms interchangeably, calling their brokers advisors.

What should a broker do for me?

Two things: 1) Find buyers and 2) Help you navigate the sale process, including negotiating sale price & ensuring you avoid common mistakes.

Is it too early to look for a broker?

Probably not. The best brokers are invested in helping clients work toward a sale, even if it's not for a year or two. If you work with them in advance, they can help you identify levers to pull to increase the valuation of your business.

How much do brokers charge?

Most charge a success fee, or a commission that's a percentage of the sale price when you close on the deal. While each firm is different, for a $1 million deal, you can expect to pay around 10%; that percentage goes down if the deal is bigger and up if the deal is smaller.

Some specialty brokers also charge a retainer leading up to the sale, but please only work with one of these firms if they come recommended.

How should I find a broker I can trust?

Ask us for a recommendation! We have a short list of vetted brokers, and we're happy to match you with one who has experience selling your type of company.

For more Qs, here's our post on working with a broker.

And if you want a recommendation, we're happy to help.

Happy holidays! 🌟

We're taking a break from sending this newsletter until after the New Year.

Hope you have a wonderful holiday season, and we'll catch you in 2024!

See you next time,

Lexi Grant
Founder & CEO
​They Got Acquired​