A broker shares a short description of a company. The buyer sees a few headline figures and has to decide whether to spend more time on it. Before opening every file or asking for a long call, a few direct questions can make that first decision easier.
The aim is not to run diligence in the first exchange. It is to understand the scope of the opportunity, the process around it, and the one fact that could change the fit with your firm's acquisition criteria.
What is actually for sale?
Start with the shape of the transaction. Is the seller offering the whole company or only part of it? Which business lines and locations are included? Is real estate part of the opportunity, or handled separately? These answers help the team understand what it would own before comparing the company with a platform or add-on thesis.
A buyer can ask for the scope in plain language: “Could you clarify which entities, locations, or lines of business are included in the sale?” If the broker cannot share a detail at this stage, follow the confidentiality process and keep the open point marked as unconfirmed.
Where is the process now?
The next useful question is about timing and steps. Is the broker gathering initial interest, arranging calls, or working toward a stated bid date? What materials are available now, and what is normally shared after a confidentiality agreement? Knowing the sequence helps the team decide whether it can participate and what to review first.
Ask about the next step rather than assuming one: “If the opportunity appears to fit, what would you need from us to move forward?” That keeps the exchange practical and gives the broker a chance to explain the seller's process.
What do the financial figures represent?
Before comparing revenue or EBITDA with the firm's range, confirm the period and basis. Are the figures for the last full year, a trailing period, or a current run rate? Do revenue and EBITDA refer to the same business scope? Has an adjusted figure been presented, and if so, what adjustments are included?
The buyer does not need every supporting schedule for a first screen. The point is to know what a headline number describes and whether it is comparable with the firm's criteria. If the basis is not available yet, record that gap instead of treating the number as confirmed.
What one fact could change the fit?
Use the firm's actual acquisition criteria to choose one focused question. If the company seems close to the size range, confirm the relevant period behind the figures. If sector fit is unclear, ask what the company sells and who its customers are. If the business could be a platform or an add-on, clarify which parts of the offering or footprint are included.
A short question is easier to answer than a generic request for more information. It also makes the buyer's decision clear: a pass if a required criterion is not met, one follow-up if an answer could change the screen, or a request for the next materials when the known facts support moving forward.
End with a clear next step
A useful first exchange should leave both sides knowing what happens next. Summarize the scope, the process, the basis of the headline numbers, and any open fit question. Then respond in a way that matches the evidence: pass, ask for the one missing fact, or follow the broker's process to review the next materials.
That is enough for an initial screen. The buyer stays aligned with its criteria, the broker gets a specific response, and detailed diligence can wait until there is a reason to continue.