Is it normal for seller to ask for the fund's legal forms?

by a searcher from Columbia University - Columbia Business School

2 months ago

Hi everyone, is it normal for a seller to ask for the legal forms of the fund and the ID's of the investors on the cap table prior to signing NDA?
I am negotiating few deals, submitted 7 LOI's and more than 20 NDA's with none of the sellers asking for anything more than the fund's registration number. Now, I am interested in a business that is owned by a local bank and they are asking for the legal forms which sounds awkward albeit I am negotiating a deal with another local bank and they did not ask for the same!

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searcher from Georgia State University - J. Mack Robinson College of Business

Not normal, but understandable for a bank. Most sellers wouldn't ask for this before an NDA. Explain you provided NDAs to other banks without this request.

1 month ago | like reply | 0 likes

searcher from Massachusetts Institute of Technology - MIT Sloan School of Management

I won't speculate on what the 'market' is however I've seen all sorts of hoops brought up. II had a similar one recently where a purported 'broker' wouldn't accept a backing letter from a respected fund as proof of funds.

1 month ago | like reply | 0 likes

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