Review counter-LOI in a multiple offers on a brokered search scenario?

searcher profile

June 02, 2020

by a searcher in Los Angeles, CA, USA

If there are multiple offers on an opportunity, is it acceptable/professional to ask the broker for a copy of the (redacted) counter-offer LOI? The intent here would be to review in detail before formulating a counter-offer, if there is further interest. This would also, quite frankly, eliminate any "padding" that may or may not have occurred in verbal conversations....

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commentor profile
Reply by an intermediary
from Northwestern University in Portland, OR, USA
Having been a entrepreneur, yes - always be willing to walk away at whatever your reservation price is. Now being a broker and former buyer at Fortune500 companies, I'll say this - don't always assume a broker coming back is because there aren't any other good offers on the table. A good broker will always make buyers think there are multiple offers on the table redacted Especially when it involves large PE funds and corporate strategic buyers.

That said, if you want to be taken seriously - remove as much risk as you can from "contingent funding". It makes all of us brokers uneasy when we see buyers that bid with no committed funding to do the deal. You're all likely bidding against committed capital if you enter a bidding process - don't put yourselves behind the 8-ball by having zero committed funding or letters to prove so. Also, overly "creative" deal structures = I don't have committed funding.
commentor profile
Reply by a searcher
from University of Virginia in New York, NY, USA
The simple answer is no. It is a brokers job to talk you up and if they are speaking with you that means you are in the running. If they have communicated a number you are comfortable with make sure it is tied to exclusivity. If your original offer was not your best and final, sharpen you pencil and put forth the best the deal you would be willing to close on and let the cards fall where they may. No point in bidding against yourself and having buyers remorse. Successful deals are all about buying right.
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