Be careful buyers! Broker countered IOI with APA and 21 day DD.

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by a searcher from Northwestern University - Kellogg School of Management
in San Diego, CA, USA

10mos ago

Be careful buyers! Broker countered IOI with APA and 21 day DD.

Wanted to share an experience I had in case it helps other buyers. Made an IOI on a business on Friday. Broker got back to me on Saturday with a counter requiring signing the APA and keeping DD to 21 days. Immediately raised some red flags for me. I countered yesterday (Monday) with a 30 day preliminary DD with LOI as next step. Just heard from broker today (Tuesday) that their 2025 projections are down 44% vs. the projections they had last Friday and that they were now reducing the asking price by… wait for it.. 63%; and since it wont qualify for SBA, they now want an all cash offer. I ran away from this deal but just wanted to share so you all are careful out there and don’t make hasty decisions!

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reply by a searcher 10mos ago
from University of Pennsylvania in Philadelphia, PA, USA

Great to flag for the community. It is a mystery why brokers would try to do something like this because it is asking for a legal battle down the road.

reply by a searcher 10mos ago
from Villanova University in Philadelphia, PA, USA

I asked ChatGPT for a quirky pun to use in my response, and here's what she came up with..."This deal has more red flags than a used car lot on clearance weekend." Anyway, run away from this one.