No AR, asking for Earnest Money Deposit, no LOI - straight to APA???

by a searcher

2 years ago

How common on a small ($1.3m EV) financial buyer-type deal is it to have AR excluded, include Earnest Money Deposit, and move straight from buyer/seller call to APA? 

IOI, LOI, DD, APA --> all part of the dating process and now I feel like, maybe all of that is a time and process killer for such a small deal in this case. 

AR/AP - always felt similar to gas in the tank for a new car you just bought and drove off the lot. For this small of a deal, wondering if just not how it's handled in this neck of the woods. 

EMD - seems more RE transaction related to me but I can also see how it ties into moving straight to the APA and demonstrating commitment on my end. 

I almost feel like I am getting taken for a ride but at the same time can see the other side's point. 

Business has consistent $1.2m Annual Rev, $450k SDE with ~$250k in land included.

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7 comments

searcher from Cornell University

Smells like a Realtor trying to be a Biz Broker....

6 months ago | like reply | 0 likes

searcher from Brigham Young University

I have run into several local brokers insisting on refundable earnest money deposit with a LOI. In these cases they have been the largest broker in town and for the most part set the terms. Seems like it is more to protect their commission than show how serious you are as a buyer.

2 years ago | like reply | 0 likes

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