Looking for advice on multi-buyer scenario
August 08, 2024
by a searcher from Sophia University in The Woodlands, TX, USA
Hi all,
I'm looking for specific advice on actions I can take to get in front of another buyer.
About three weeks ago, I contacted a broker about an (OEM parts manufacturer) listing, signed the NDA, received a boatload of financials, etc. and have been looking at the deal deeply, while discussing financing feasibility w/ Angel investors and feel comfortable there may just be a deal here.
Last week, (all week) I traded voicemails with the seller's broker and finally connected last Thursday (I do not have Buyer Representation). We hashed out a few questions i had, and told him I had definite interest and would like to arrange a zoom call w/ the seller. He suggested i send an email with potential times and he'd get back to me.
Monday he confirmed he got my email with a "we'll get back to you” text and today (Wednesday) when I hadn’t heard from him, called again and learned that the buyer has an LOI on the table and he'll 'probably' sign it this evening.
I was caught off guard, but asked if the seller was aware he had another buyer with interest. i couldn't really get a definitive answer.
I shared with the broker that I had an opportunity to drove to their state a week ago, and checked out the town and did a driveby of the plant. redacted
although it should not be relative in an acquisition process, for reference the purchase prices is about 2 1/2 mil, … 4X multiple).
He shared that the current LOI the seller has on the table, may “not have had an exclusivity clause”- and as such he will go back to the seller asking if they want a face-to-face.
So, shifting into strategy mode here.... does anyone have any thoughts as to me simply submitting an LOI without ever actually talking to the seller? Does he not have fiduciary responsibility to share it?
I'm also open to any other thoughts/input anyway may have, or other strategic options available. I have the name of the seller, and it’s in a very rural town.
I'm self-funded, searching for over a year now, and this is the first one I've seen that fits all the boxes and I can see myself at.
Thanks in advance, your inputs appreciated.
John.