I have developed these principles as part of my brokerage activities in order to maximise results and minimise risks.
They have allowed me to attract high profile people from various geographies, gain their trust, and source top business opportunities.
The more I gain experience the more I improve these decision-making principles, as trust is fundamental in deal-making.
Advisor: reputational risk...
Broker: time, reputational, circumvention... risks.
Trader: commercial risks (e.g., volume, price)...
Producer: capital risk...
The client complies with the law.
I have a direct access to the client (e.g., seller, buyer, decision-maker).
I get the right to information, mandate, Client Information Sheet for Know Your Customer/Anti-Money Laundering, Proof of Product, Proof of Funds...
My compensation includes:
Capital expenditures (e.g., creating a new company...);
Operational expenditures (e.g., travel expenses...);
Fixed compensation (e.g., retainer fees...);
Variable compensation (e.g., success fees, stock-options, equity shares...).
Motivations:
Freedom, security, & prosperity.
Improve them.
Do not deteriorate them.
Be professional:
Anticipate.
Be objective.
Comply.
Communicate.
Be honest and transparent.
Separate professional and private lives.
Maintain excellent relationships with all stakeholders.
Make friends.
Do not make enemies.
Protect the client:
Protect the confidential information.
Be result-driven (cf.: chutzpah...).
Perform actions which increase the likelihood of the deal to get closed:
Connect the buyer, seller, decision-makers via corporate emails directly.
Organise (video) calls between the buyer, seller, decision-makers.
Arrange in-person meetings between the buyer, seller, decision-makers.
In case of any conflict of interest between the client and a personal relationship representing the counterparty, the priority should be protecting the client (cf.: fiduciary duty, variable compensation...).
Should a broker provide exclusivity on his/her client to the counterparty broker? No, as it opposes the fiduciary duty.
Protect the middle-men (e.g., brokers...):
Minimise the reputational risk:
The seller has the product (i.e. Proof of Product).
The buyer has the money (i.e. Proof of Funds).
Have direct access to the client (e.g., seller, buyer, decision-maker).
Work with great companies (i.e. audited financial reports, credentials, professional online communication...).
Work with great people (i.e. reputation, track record, credentials, deals, recommendations...).
Minimise the circumvention risk:
Keep all the brokers in the loop, mention them as CC in mails, LOI...
Sign the Non-Circumvention & Non-Disclosure Agreement (NCNDA).
Sign the Irrevocable Master Fee Protection Agreement (IMFPA).
Become a trader.
Sign the Memorandum of Understanding (MoU).
Sign the Memorandum of Agreement (MoA).
Create a joint-venture company.
Become a producer.
Additional principles:
Be equitable, as the more one takes risks and contributes to the collective success, the more one should be rewarded.
Do not seek profit at all costs. For example, friends, business relationships [...] are more important than short-term gains.
Aim for a consensus. If it’s not possible, then exit the project, and leave the involved parties on good terms.
Limitations:
In the end, all the parties have to secure their own interests by themselves. I do not guarantee anything to anyone.
The “Me, Myself and I” principle can prevail under certain circumstances.
A deal requires significant time to be executed and closed. During the deal execution, any party may delay his/her answers, change his/her mind, retreat... So, it is always important to have a leverage on the counterparty. Brokers are well-positioned to ensure this role. So, there is little (no?) interest in circumventing them.
Companies operate over the long term and make deals often times. So, performing brokers are assets to them, and they must retain them.
Companies run reputational and legal risks.
However, the circumvention risk always exists, that is why no broker should underestimate it.
The LOI has to be ideally/directly addressed to the seller, decision-maker, great companies, high-profile people...
This is an example of an acceptable corporate email: firstname.lastname@companyname.com
LOIs addressed to middle-men usually do not work.
Buyers work on the bank-to-bank basis (e.g., SWIFT, LC, SBLC, escrow...).