Should I reach out to the banker or go direct on LOI signed in 2019?

searcher profile

June 07, 2023

by a searcher from University of Pennsylvania - The Wharton School in Miami, FL, USA

Hello
Looked at a deal in###-###-#### actually signed an LOI - that was represented by a banker.
During process, earnings came in lighter than expected and family-office would not bend on valuation so I pulled out.
Fast forward 4 years and Family Office still owns the business (9 years total).
I still like the business and I can safely assume the any sell-side agreement btwn bank/family office has expired.

I want to rekindle my interest. Do I reach out directly to the family office or to the bank?

Thank you!

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commentor profile
Reply by an intermediary
from University of Pennsylvania in Durham, NC, USA
I agree with reaching out to the family office. There could be an exception if you've maintained a dialogue with the banker about the specific transaction and don't want to feel like you're going around them. But this would be more about maintaining goodwill with the banker than a legal obligation. If you signed an NDA with the banker in 2019, make sure you review the circumvention provision, if any.
commentor profile
Reply by an intermediary
from The University of Michigan in Bonita Springs, FL, USA
Review the NDA you signed first. Adhere to the terms in the agreement signed between you and the investment banker. If those terms haven't expired, go back to the investment banker. If they have expired, go directly to the FO. The FO has/had an agreement with the investment banker as well. Remind the FO they should review their agreement as they may or may not have commission due should you transact.
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