LOI counters in writing

by a searcher from New York Chiropractic College

3 years ago

I submitted an LOI to a broker for the business I'm interested in, didn't get anything back in writing.  I asked for a counter and the broker said "that's not how it's done in the M&A world".  He told me verbally the number and terms necessary (very one sided terms) it would take to get the deal done but nothing in writing from the seller. Broker wants me to submit a new LOI and now it feels like I'm negotiating against myself.  Is it too much to ask for a written counter to my LOI? Two previous negotiations involved back and forth with the seller, this is my first interaction with a broker representing the seller.

2 likes
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6 comments

searcher

You don't negotiate with the broker point blank. His only use is to provide you the information you need. Other than that, the seller is the owner, you negotiate with the decision makers. And your offer is based on the sellers needs of selling, time or money.

3 years ago | like reply | 0 likes

searcher from University of California, Santa Barbara

These are both good responses. I would take the brokers reply as their response so you are not negotiating against yourself. You have been told what they are looking and you can decide if you want to meet it or come close. If you think the ask is crazy’s dB you like the deal, might be best not to counter and just check in like a month later and see if they have softened

3 years ago | like reply | 0 likes

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