A business broker is a person or firm engaged in the business of enabling other businesses to get sold.
Business brokers typically value the business, advertise it for sale, handle the initial
discussions with prospective buyers and assist the owner of the business in selling it. They are paid either a fixed fee or a percentage of the sale price. Buyers sometimes retain a business broker to find them a particular kind of business.
In the United States, licensing of business brokers varies by state, with some states
requiring licenses, some not. Some states require licenses if the broker is commissioned but not if the broker works on an hourly fee basis. State rules also vary about recognizing licensees across state lines, especially for interstate types of businesses like national franchises. Some states require either a broker license or law license to even advise a business owner on issues of sale, terms of sale, or introduction of a buyer to a seller for a fee.
This form is a general Non-Disclosure and Commission Agreement Between a Business Broker and a Prospective Buyer.
The Arizona Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer is a legal document that outlines the terms and conditions under which a business broker may disclose confidential information to a potential buyer. This agreement is commonly used in the state of Arizona to protect the interests of both parties involved in a business transaction. The purpose of the agreement is to ensure that the buyer maintains the confidentiality of any information disclosed to them by the business broker. This includes sensitive financial data, customer lists, trade secrets, and other proprietary information. By signing the agreement, the buyer acknowledges that they will not disclose this information to any third parties without the written consent of the business broker. In addition to the nondisclosure provisions, the agreement also addresses the commission that the business broker will receive upon the successful completion of a transaction. It outlines the specific terms of the commission, such as the percentage or flat fee amount, and the circumstances under which it will be paid. This may include the closing of a sale, the execution of a lease agreement, or any other agreed-upon milestone in the transaction process. It is important to note that there may be different types of Arizona Nondisclosure and Commission Agreements depending on the specific needs of the parties involved. For example, there may be separate agreements for different stages of the transaction process, such as initial negotiations, due diligence, and final closing. Each agreement will contain its own set of terms and conditions tailored to the specific requirements of the parties. Overall, the Arizona Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer serves as a legal safeguard to protect the interests and confidentiality of both the business broker and the potential buyer. It ensures that sensitive information is not misused or shared without proper authorization, and it provides clarity on the commission terms and payment structure for the services rendered by the business broker.
