Broker etiquette when passing on a deal?

searcher profile

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!

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commentor profile
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
commentor profile
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.).
commentor profile
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