Not Getting Broker Feedback on LOI

February 17, 2022

by a searcher from Duke University in Tulsa, OK, USA

I submitted an LOI for a business last Friday for a business listed with a broker. At the time the broker told me that they thought it was a strong offer. My initial LOI had an expiration this past Tuesday. Each of the past two days the broker has told me they need more time for feedback and evaluation. I suspect they are purposely stalling in hopes of getting another LOI and creating an auction.

I am tempted to inform the broker that if I don't get feedback today or tomorrow at the latest I will consider my offer rejected. I would explain that continued non-response indicates to me the Seller is not enthusiastic about my offer and the prospect of working with me so I am moving on.

Is this the correct approach? How would handle this situation?

Reply by a searcher
in Austin, TX, USA

If the broker is playing these games this early on you have to wonder what to expect in terms of professionalism and transparency throughout the rest of the transaction. My hunch is buckle up for loads more of this kind of behavior and be prepared to struggle to close. Unless it's a legitimate can't miss opportunity, I suggest you politely move on. If he reaches back out to you, you'll have a lot more leverage and if not, then you probably dodged a bullet.

Reply by an intermediary
from Royal Roads University in Victoria, BC, Canada

I would just stay in communication. In most cases there is no nefarious intent, people are busy, His lawyer may be away, his accountant is probably recovering from a serious hangover after tax season, It doesn't generally take long to review an LOI, but if your support team isn't available, you can't respond credibly.

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