Broker etiquette when passing on a deal?

February 24, 2025

by a searcher from Stanford University - Graduate School of Business in Perú

Hello!

I am looking for advice on how to communicate to a broker that I am passing on a deal without impacting my chances of receiving future deal opportunities from that broker.

I received a deal from a broker that I really want to work with (that is quite a reference in the industry I am targeting and also works in a very professional way), but unfortunately was not able to finish the analysis in time and talk to my investors before the deadline to submit an LOI.

Given that this is a broker that I would really like to keep engaging with, do you have any advice on how I could explain this to the broker in a way that does not affect my chances in being considered for an opportunity in the future?

THANKS!

Reply by an intermediary
from University of Western Australia in London, UK

You could ask for more time (sometimes they will allow this, even with a purportedly hard deadline). If the broker says no, just respectfully say that you won’t make the deadline so you won’t be making a bid. Any professional intermediary won’t penalise you for this. Let them know that you look forward to working together on more deals in future

Reply by a searcher
from MCI in Linz, Österreich

Full transparency. We are all human - as long as it does not shadow your competency to execute on a deal. Make sure, that the reasons given are due to deal mechanics, not you as a person (e.g., overthinking, main-job workload, vacation, etc.).

+4 more replies.

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