For the folks that submit a bunch of LOIs at around the same time....What do you do if multiple different parties like your offer?

July 15, 2025

by a searcher from Boston University - Questrom School of Business in Newton, NH, USA

This is one part of ETA that I do not understand....I see some folks that are "frequent LOIers". Let's say you send out five, and three get back to you and like your offer. What do you do then? Are you burning money doing diligence on three deals at once? Or do you renege on the two that you like the least?

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Reply by an intermediary
from University of Alberta in Edmonton, AB, Canada

Hi Matt, In a normal course acquisition I would suggest that buyers should do enough preliminary due diligence before writing an LOI to then stand behind each offer assuming no significant confirmatory/final due diligence issues are found. Complete a good deal and walk away with a referral from the owner to add credibility for the next acquisition. In the world a searcher if you are only doing one deal then you might not be as concerned about walking away - from a now less interesting opportunity / LOI and the reputational impact that might have. Deals are hard to close at the best of times. Sorry to say when searchers are involved - in my view they can have a lower probability of closing given process inexperience and differing levels of committed vs uncommitted financing. I would try and keep two of those deals in play through due diligence to give yourself an option should the preferred one fall apart for whatever reason. But be careful and don't play that card too often.

Reply by a searcher
from University of Northern British Columbia in Vancouver, BC, Canada

sounds like these frequent LOIers like to shoot first and ask questiions later

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