Retrade

Definition

A retrade occurs when a buyer changes (typically lowers) their valuation or deal terms after an initial agreement or indication of value — often after management meetings or during due diligence. Retrades are viewed negatively by sell-side bankers because they disrupt the process and erode trust.

Context

Retrades are cited by Chris Reilly in Ep. 23 as a key negative signal that boutique bankers track when evaluating buy-side firms. Buyers who stick to their stated valuations through a process earn stronger relationships; those who retrade risk being excluded from future narrow processes and fireside chats.

Related Terms

• M&A Process Dynamics — retrades affect process behavior tracking
• Engaging Boutique Bankers — retrades are a negative signal
• Fireside Chat — retrade history affects access to fireside chats