Potentially partner with competing offers?

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March 17, 2020

by a searcher from Prairie View A&M University - College of Business in Dallas, TX, USA

I'm currently raising capital for a great company that I have under LOI. Per the Competing Offers clause in the LOI, the owner has notified me that they have received other offers via a broker due to listing the company sale on a website before we signed. They are not attempting to negotiate the price in any way, we've built a great rapport and they care more about who buys the company than the price. Should I find out who the other offers are from and see if they would be open to investing as an LP?

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Reply by a searcher
from Harvard University in Arlington, MA, USA
I would highly advise against it, or at least consult an attorney before doing so. It could be categorized as collusion or price-fixing. If your intention is solely to have more resources for the deal, then I would wait until you've already signed something binding with the seller before contacting other buyers.
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Reply by a searcher
from Temple University in Philadelphia, PA, USA
If they will tell you, I don't see a downside if finding out who they are. It will show you who you could possibly exit to in the future, they may want to be your LP, and (hopefully) you'll be able to show the seller why you are the best steward for their business going forward.
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