What typically characterizes intermediated deals?

Intermediated deals are often characterized by higher prices due to increased buyer competition. In these scenarios, intermediaries act as facilitators or brokers between buyers and sellers, and their involvement often leads to a concentration of potential buyers who are looking for the same asset or service. As more buyers compete for the limited offerings available, the natural result can be an increase in prices, as motivated buyers may be willing to pay more to secure a deal.

This competitive dynamic is a key factor in intermediated transactions, which can drive up prices compared to direct deals where competition might be less intense or more fragmented. Factors such as the perceived value provided by intermediaries and the advantages they may offer, such as access to exclusive listings or specialized knowledge, can further contribute to this escalation in pricing.

Understanding the dynamics of intermediated deals helps to explain the pricing structure in various markets, particularly in real estate, investment banking, or industries where brokers and agents play a significant role.