Question for brokers

by a searcher from Full Sail University

3 years ago

If I have submitted a letter of intent (not yet countersigned) on a business represented by a broker in a brokerage group, is it kosher for me to inquire on another business represented by someone in that same group? Knowing it’s at least somewhat likely that the first broker would hear I was pursuing other leads, I wonder how that would be received.

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10 comments

searcher from University of Washington

Re optics I would consider how engaged you have been in deal #1 and on whether the deals are mutually exclusive. Letters generally have drop dead dates and if seller is engaged/expecting a counter within that window and deal #2 would exclude your doing deal #1 I would wait until the window expires. If no window you might consider letting broker on deal #1 know that you are looking at other deals.

3 years ago | like reply | 0 likes

searcher from The University of North Carolina at Chapel Hill - Kenan-Flagler Business School

I agree that honesty and integrity is generally the best way to conduct business. So, certainly be transparent. I also agree that you're under no restriction from inquiring into other businesses, I'd think even after you have a counter-signed LOI. Signing a second LOI may be an issue, but having another opportunity that you're already familiar with allows you to pivot quickly in case the first deal doesn't work out. It's not as if you've asked two dates to the same dance; you're allowed to keep your options open.

3 years ago | like reply | 0 likes

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