Dr Allen Nazeri DDS MBAHealthcare M&A Expert

Brokerage Circumvention: The Fastest Way to Destroy a Deal—and Your Reputation | PRIME exits®

2 Dec 2025 · 1 min

Watch on YouTube

1:08

A short YouTube presentation by Dr. Allen Nazeri (PRIME exits®) warning against brokerage circumvention in M&A. It argues that attempting to bypass brokers is unethical and legally risky (breach of contract; courts protect broker fee rights), damages seller reputations and valuations, exposes buyers to joint liability and blacklisting, and undermines future deal flow. The video stresses that intermediaries are crucial to M&A and that honoring agreements preserves credibility and long-term opportunities.

Foreign.
Circumvention might seem like a clever way to save on fees, but it's a dangerous illusion. Attempting to bypass intermediaries is not only unethical but also legally risky, potentially damaging reputations and deals permanently.
Circumvention is a breach of contract with serious legal consequences. Courts uphold broker fee rights, leading to potential damages and legal costs. Notable cases highlight the severe repercussions of bypassing intermediaries.
When sellers attempt to cut out brokers, they risk becoming shelf worn. This means their reputation suffers and their valuation drops, making future deals more challenging.
Circumventing signals unreliability and a willingness to break contracts. Ethical buyers avoid deals with sellers who show moral ambiguity, risking their own reputations. By association.
Buyers who participate in circumvention face joint liability and damaged credibility. They risk being blacklisted by brokers and losing future deal flow. In the industry.
Intermediaries are crucial for successful MA transactions. Respecting agreements ensures credibility and future opportunities. In ma, reputation is currency. Once lost, it's hard to regain. By honoring agreements and respecting intermediaries, you'll protect your reputation and secure future partnerships. Remember, in M and A, integrity is key to long term success.
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