Close
(0) items
You have no items in your shopping cart.
All Categories
    Filters
    Preferences
    Search

    Don't Let Clients Do an End Run Around You

    Don't Let Clients Do an End Run Around You

    Let's say you're brokering a deal between a client who wants to sell a business and potential buyers who are interested in acquiring just such a business. You arrange for your client to meet several of these buyers to discuss whether a deal is do-able. Later, your client tells you that none of them are really serious and he'd like some time to consider his options.

    A couple of months go by, and you find out that he completed the sale of the business to one of the buyers you introduced him to. Not only is it infuriating and unfair to lose your commission in this way, it's unnecessary.

    Every broker or agent who acts in an intermediary role in a transaction should have their clients sign a non-circumvention agreement to prevent just such an end run from occurring. There are many scenarios in which a non-circumvention agreement should be considered, for instance:

    A non-circumvention agreement is typically conjoined with a confidentiality or non-disclosure agreement (NDA). This enables the parties to protect not only their business leads and contacts that they have worked so hard to establish, but all of the confidential information that they have exchanged with each other. Every NDA should include a non-circumvention clause to prohibit the person receiving the confidential information from circumventing the owner of that information by directly contacting its customers, employees and business contacts.

    Leave your comment