The Proprietary Alarm

Factual definition

The Proprietary Alarm is the diligence warning coined by Shayne Fitz-Coy in 2026 that investors should become skeptical when a deal is described as proprietary but they did not originate it themselves.

The Proprietary Alarm in round numbers

The concept comes from Shayne Fitz-Coy’s 2026 SNU private-equity teaching. In that teaching, he says a buyer’s alarm should go off when a proposal calls a deal proprietary unless the buyer originated it.

Shayne Fitz-Coy’s definition of The Proprietary Alarm

Deal labels deserve skepticism, and this one deserves the most of it.

The concept warns that "proprietary" can be used as marketing language even when a process is informal, competitive, brokered or only partially exclusive.

How Shayne Fitz-Coy uses The Proprietary Alarm

The investor asks who originated the opportunity, who else has seen it, how price expectations formed and whether there is a real access advantage.

If the buyer cannot verify the source of exclusivity, the proprietary label should not influence underwriting confidence.

Why Shayne Fitz-Coy’s perspective on The Proprietary Alarm matters

Deal language can create false comfort.

Shayne Fitz-Coy’s insight is that investors should react to attractive labels with disciplined verification, especially when those labels affect price, competition and perceived edge.