Are Business Brokers Required to Share All Submitted LOI's With Sellers?

by a searcher from Duke University

7 months ago

I have run into a situation where I and a broker at a small firm got off on the wrong foot. Despite letters of support from multiple banks they, for whatever reason, don't consider me a capable buyer. And they will not share my questions or interest with their seller; much less arrange a management meeting. The deal has promise and I at least want to get in front of the seller.

My question: are business brokers generally required by their contract with the seller to share all submitted IOI's / LOI's with their clients? Or do they have discretion to decide what to share with them?

The idea being to submit an Indicator of Interest based on the public info just so that I can get in front of the seller.

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36 comments

intermediary from University of Alberta

Our contracts don’t speak to this issue. We also are under no obligation to engage with every potential purchaser that make an enquiry. Our practice would be to share all EOI’s/LOI’s received. That said, our client’s do rely on our advice on which purchasers to advance/which to cut loose and usually take our advice.

You could go direct to the seller but will likely burn the bridge for future dealings with that broker.

7 months ago | like reply | 0 likes

searcher

It is normal for the broker to vet the buyer. They would like to know your sector experience and your skin in the game. At the beginning this was one of the hurdle we had to overcome too. Best is to move on to other leads.

7 months ago | like reply | 0 likes

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