Probably a noob question, but is it possible to get the range of purchase price from a broker on an unlisted price deal?
My boss asked me to find the purchase price and then get a quote on reasonable debt from our brokers, but the deal price on the OM says unlisted/submit offers. I personally don't have a relationship with the IS team responsible for the deal, so is there a way for me to somehow get a reasonable range or estimate of what we could buy the building for from the brokers, and how would I do that?
Just call the brokers and ask for pricing guidance. They'll lead you in the right direction.
Agreed with above. Almost all of our deals are unpriced. Just ask them what the "whisper" is or have them give you the desired transaction range. Brokers (most of them) aren't stupid. We know if we don't give a price range or whisper price, the deal won't get any attention. Acquisition officers don't want to waste their time underwriting a deal with no idea if the seller's pricing expectations are reasonable.
Yes they will usually give a range. The lower end of the range would be reputable buyer, quick DD, higher would be for unknown buyers or longer DD periods.
There is an old saying.... If you have to ask, you can't afford it! J/k, as everyone said, you can call and ask for guidance, they will have some standard answer to give you.
Worth noting, if this deal is in the smaller deal size, then they will more likely be receptive to this call and give you good info. The higher up the league table the deal, the less you will probably get. Part of the "unpriced" strategy is to let the bids sort out the idiots (i.e. anyone who substantially underbids AND overbids get eliminated). Depending on the nature of the deal, you may want to play the "I'm an analyst (or intern if really scared) and my boss told me to find this out" card, may help (or you may get hung up on, who knows). I would recommend calling the most junior name on the OM, they have the most motivation to talk with a new "buyer" and give you legit insight. The senior guys may not waste time with you.
This last part in particular makes a lot of sense imo.
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