Do you tell brokers 'no thanks' after an initial meeting with seller?

searcher profile

July 19, 2022

by a searcher from University of Southern California in San Diego, CA, USA

Quick survey if folks reach out to let broker know you're not going forward with a deal after it looks like the deal doesn't make sense after meeting with the seller? This conclusion was based on the revenue makeup, not the seller's character. Thanks!

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commentor profile
Reply by an intermediary
from New York University in Menlo Park, CA, USA
Are you creating relationships or completing transactions?

If you want a relationship with the broker, where they give you a first look at high-quality deals, then you should develop a relationship by providing feedback. A simple email takes seconds to draft and send. Just say you've decided to pass on a specific opportunity and give a basic reason why the opportunity isn't a fit for you. The response provides feedback for the seller and also helps the broker keep track of buyer interactions and interest levels.

If you don't care about ongoing relationships with intermediaries, then ghost the broker. You can be sure you'll be treated with the same lack of courtesy on future opportunities. No early visibility into new opportunities, slow responses to your questions, no steering the sellers towards the strengths of your offer.
commentor profile
Reply by a searcher
from University of Pennsylvania in Dubai - United Arab Emirates
With initial or "low level" contacts with an intermediary (i.e. getting a teaser or an initial call) i have typically indicated that i will revert if i have further interest. At that point i dont believe any further interaction is needed. However if an intermediary has gone through the time and effort to set up a meeting which you and the Seller have also invested time in then at minimum a thank you but no call I think is definitely in order. The extent to which you share the rationale for declining is situational. i find it useful to let intermediaries know for several reasons (a) they better understand what works and doesn't improving the quality of dealflow they show me; (b) on rare occasions they are able to bridge a misunderstanding or find a workaround to the issue and (c ) it builds rapport which could pay off in the future.
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