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

searcher profile

August 12, 2025

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

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!
5
8
277
Replies
8
commentor profile
Reply by a searcher
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.
commentor profile
Reply by an intermediary
from Wake Forest University in Winston-Salem, NC, USA
I'm picturing a runaway anchor chain running wild off the deck, and their leg is caught in it...glad yours isn't.
commentor profile
+6 more replies.
Join the discussion