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

searcher profile

May 20, 2024

by a searcher from Columbia University - Columbia Business School in Cairo, Cairo Governorate, Egypt

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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commentor profile
Reply by an investor
from University of Illinois at Urbana in Chicago, IL, USA
I gotta say this is one of my favorite back and forths and a super cool highlight of the value and this platform and its contributors. This particular question in a vacuum if you have no deal experience would be hard or impossible to find an answer to. And yet here the community provided great real world experience. Super cool - well done ^redacted‌
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Reply by an investor
from Western Washington University in Key West, FL 33040, USA
It's likely the seller is concerned that you may be a trojan horse on behalf of one of their competitors. I would offer that you will share who your partners are, if you execute a mutual NDA. They can review this before they submit any confidential info to you. If they're not willing to do this, then just move. You are likely saving yourself a lot of time, money, and mental anguish.
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