Hello everyone,

I'm still getting my feet under me when it comes to working with sellside brokers so perhaps this is a very ignorant question, but is it common for brokers to have what I would describe as disdain for LOIs?

I've read a high level CIM for a business and had a one hour call with the Seller (+broker) for a ~$4.5M asking price opportunity. The broker is recommending that we respond to his 13 question survey - the responses to which would constitute the binding Asset Purchase Agreement. He tells me not to worry about that because there are "plenty of contingencies" and I "can always back out of the deal" before the clock expires.

I'm not comfortable with this approach as my experience has been to sign up an LOI to get to the next phase of diligence, with an APA being signed at closing (more like an M&A transaction and less like a house closing). There is SO much I don't yet know about the business - it just feels like moving to APA now is putting the cart way before the horse.

Am I crazy? Any advice on how to navigate this without pissing off the broker too much?

Thank you!