Broker wants to blacklist me for "signing too many NDAs"

November 21, 2024

by a searcher from Ryerson University - Ted Rogers School of Management in Toronto, ON, Canada

Has anyone ever heard of brokers who ban searchers because they review "too many" deals?

They wrote to me that "you've signed 65 NDAs in the last 12 months and never submitted an offer" and threatened to blacklist me (?)

I find most of their listings to be lower than expected quality (so do Acquisition Anonymous podcast hosts, by the way). I.e. the teasers are written very well, but then details arise in the CIM that make the deal less attractive (to me, at least) than it seemed from the teaser.

The guy even took a personal jab at me after I reviewed his latest eCom listing and told him it was a pass because after reviewing it turned out to be a one-man dropshipping operation with generic low-quality products that can be found on Aliexpress ... "But now I completely understand why you have never made an offer on any [of our] listings."

Upd: it's a large brokerage with multiple agents and lots and lots of listings, so the 65 number is across their entire inventory and entire team. I've only interacted with this one particular person's listings twice, and both times he gave me a hard time. The rest of their brokers were great people to work with

Reply by a professional
from The University of Chicago in Chicago, IL, USA

Thanks for the tag ^redacted‌. Greg I have never heard this before. You said that this specific broker gives you a hard time every time you interact with him. My advice would be to completely avoid this broker in the future. Even if you find a really good deal that he represents, it might be very challenging to make progress. Good luck with your search.

Reply by an intermediary
from New York University in Menlo Park, CA, USA

I’m all for getting exposure for my listings by sharing both the teaser and the CIM, and I completely understand that many buyers will find things they don’t like once they’ve reviewed the details, then decide to pass. I’m well-organized and ready to handle a high level of inquiry into my opportunities. I also genuinely appreciate the search fund model. Most searchers I meet are exceptionally bright, thoughtful, and driven to find the right business for them. At the same time, I’m not running a “learn-to-evaluate-a-business” school—I have to sell my client’s company. If you see from my teaser that you must be a pharmacist to own this business, and you don’t have that background, why request the CIM? If it’s a software company and you have no software experience (or at least a strong operational plan), how do you plan to run it successfully? When buyers chase deals that are clear non-fits or submit offers far below a reasonable range, it wastes my time and threatens my credibility with the seller. Of course, if you do have relevant experience, funding, or a solid operating strategy that aligns with the business, I welcome your inquiry and the chance to explore a mutually beneficial deal. Let’s be sure the opportunity is truly a match before diving in, so we can spend our time productively and preserve the goodwill of everyone involved.

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