I always send a response and try to provide some brief feedback on the business. In your response you can also tell the broker what your search criteria are and ask that they let you know if they have anything suitable.

In Europe it would be polite to send an email (or maybe a letter but less common). An official legal document is not necessary. Just a phone call would do as well is you don't want anything written

Interesting replies. I am searching in Egypt. I tend to provide a reason why I am not moving forward. I usually do it via phone call but I think the medium is cultural specific.

"Quick no" and a "quick yes" when applicable are always best

tagging a few intermediaries to get their perspective:

^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌, ^[redacted]‌

A note is always good. Don't always need to give full detail, usually just a "not a great fit, want to respect your time, etc." is good.

As an intermediary, I always appreciate getting feedback from a prospective buyer. The more clear a buyer is about their likes and dislikes, the better I can help them with future opportunities. Feedback is the breakfast of champions; I feel more motivated to help buyers that communicate well throughout the process. That said, I don't think a buyer is obligated to give much feedback if it is early in the process, but the deeper they have gone into the process, the more important it becomes to not just vanish!

Providing feedback helps the buyer.

A short note is polite and would be appreciated, but if it is very early in the process it isn't necessary. Your own judgement will prob tell you what feels right - if you've communicated with the broker several times about it, asked a lot of detailed questions, sought clarification from the seller etc then you will be on the broker's (and seller's) radar as a potential buyer - in this case it's useful to explain why you're not proceeding rather than just not saying anything.

I think it's important to let the intermediary know if it's due to lack of fit or more fundamentals with the business. If it's not a fit, then I need to know what's best to introduce next time (and not waste your time as a searcher). If something fundamental with the business, it lets me know if there is something I need to address with my client to improve the business or be prepared for with future buyers. Either way helps me be more productive with either side of the possible deal.

If a prospective buyer just disappears after signing an NDA, I tend to give them less respect if they inquire on something else. You have no idea the number of tire kickers we deal with every day. Find ways to separate yourself as a buyer from the masses, and this is one way.

I appreciate hearing from buyers why they did not pursue the purchase of a business we have listed.

Just like anything else, good manners generally pays off. Letting the intermediary know that you're not interested and why helps the intermediary and the seller address and resolve potential deal killers. I agree with the other comments above. A quick email generally works. Here's a perspective for you: how would you feel about someone ghosting you without explanation? Would you want to do business with them? Thanks for the post! :-)

bump

Common business courtesy would suggest "pass for the following reason". Agree with all above.

Agreed, it is our responsibility to follow up with every individual who has received a CIM after signing an NDA (if you only looked at teaser, I would not feel a response is necessary but it is appreciated as well). So if you do not reply with at least a generic response, we have to take additional time to follow up with you. In addition, you could gain additional traction with a broker if you respond with the reason why you took a pass on the deal and reiterate what type of business you are interested in the event they have other opportunities that interest you.

Agree with the above. A quick no with some level of detail is also appreciated. Especially if you know the deal doesn't fit your criteria versus some groups who produce a list of template questions regardless of how they feel after reviewing the CIM/OM.