Not Getting Broker Feedback on LOI

by a searcher from Duke University

2 years ago

I submitted an LOI for a business last Friday for a business listed with a broker. At the time the broker told me that they thought it was a strong offer. My initial LOI had an expiration this past Tuesday. Each of the past two days the broker has told me they need more time for feedback and evaluation. I suspect they are purposely stalling in hopes of getting another LOI and creating an auction. 

I am tempted to inform the broker that if I don't get feedback today or tomorrow at the latest I will consider my offer rejected. I would explain that continued non-response indicates to me the Seller is not enthusiastic about my offer and the prospect of working with me so I am moving on. 

Is this the correct approach? How would handle this situation?

0 likes
99 views
9 comments

intermediary from Royal Roads University

I would just stay in communication. In most cases there is no nefarious intent, people are busy, His lawyer may be away, his accountant is probably recovering from a serious hangover after tax season, It doesn't generally take long to review an LOI, but if your support team isn't available, you can't respond credibly.

4 months ago | like reply | 0 likes

searcher from Harvard University - Harvard Business School

Submit a new LOI for 5% less with a new deadline. That will get his attention. ;)

2 years ago | like reply | 0 likes

More on Searchfunder

Just Closed on My First Deal! Reflections and Takeaways for other Searchers

45,152 transactions are available on Searchfunder (now searchable by keyword)

Now everyone has unlimited IBISWorld access

Family office looking for traditional searchers

Self Funded Acquisition: A few Things I Learned

Examples of self-funded searcher websites

2 Best Ways To Find Motivated Sellers, Off-Market Deals

What are market terms for Seller Notes?

Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.

We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.