Broker Contract for Sale of Business

Overview

Business brokers can safeguard their leads by requiring potential buyers to sign a standard-form Confidentiality & Disclosure Agreement. This agreement is designed to protect sensitive information and ensure that the broker's role in any transaction is respected.

Broker-Buyer Relationship

Under the terms of this agreement, the buyer commits to conducting all negotiations and dealings exclusively through the broker. The broker, in turn, has a separate agreement with the seller regarding the payment of commissions. This arrangement helps maintain transparency and ensures that the broker is properly compensated for their services.

Confidentiality Obligations

The buyer agrees to keep confidential all information provided about any business they are interested in acquiring. This obligation extends to any details shared during the inquiry or due diligence process, protecting the interests of both the broker and the seller.

Broker’s Role and Accuracy of Information

It is important to note that the broker does not offer any warranties regarding the accuracy of the information provided about the business. The buyer acknowledges that the broker is acting as the seller’s agent and should verify any details independently as part of their due diligence.

Payment of Commission

If the buyer discloses confidential information to a third party, and that third party subsequently purchases the business without going through the broker, the buyer is responsible for paying the commissions that would have been owed on the sale price. This clause ensures that the broker's interests are protected, even if the sale occurs indirectly.

Template Availability and Use

This agreement template is available for download as a fully editable Microsoft Word document. It is a generic form designed to be applicable in a wide range of jurisdictions, making it a versatile tool for business brokers.

Whether you're buying or selling a business, make sure the other party continues the negotiations by getting this USA No-Shop Agreement signed at the outset.

• This agreement can be used anywhere in the United States.
• The parties to the transaction agree that they will not consider other offers or approach other potential purchasers while the negotiations between them are ongoing.
• This free template can be used by business brokers and by buyers or sellers in non-brokered transactions.
• Available in MS Word format. Easy to download and use.

Should you attempt to sell your business yourself or use a broker? This expert guide discusses the benefits of using a broker or intermediary to sell it for you.

Whether you decide to use a licensed business broker, a lawyer or an accountant experienced in buying and selling privately-owned businesses, there is a lot they can bring to the process. The guide covers a range of topics including:

• retaining an intermediary,
• how commissions are determined,
• completing a business review,
• provisions of the listing agreement,
• preparing and implementing a marketing plan,
• negotiating the deal,
• due diligence and the definitive agreement,
• closing the sale,
• licensed brokers vs. unlicensed intermediaries.

You know your business. But do you know how to sell it? Using a Broker to Help You Sell Your Business can help you decide if an intermediary is right for you.