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.
An Ohio Nondisclosure and Commission Agreement (NCA) between a business broker and a prospective buyer is a legally binding document that establishes a confidential relationship and defines the terms under which the broker will provide valuable information about a business opportunity to the buyer. The NCA is specifically designed to protect the business's proprietary and sensitive information from being disclosed to unauthorized parties, thereby safeguarding its competitive advantage and preventing potential harm or misuse. The Ohio NCA typically covers a wide range of vital components to ensure a comprehensive understanding and adherence by both parties involved. First and foremost, it outlines the purpose of the agreement, which is to facilitate the exchange of confidential information related to the potential business transaction. The agreement emphasizes the buyer's obligation to maintain strict confidentiality and restricts them from directly or indirectly disclosing, using, or exploiting any confidential information obtained during the process. Moreover, the NCA between a business broker and a prospective buyer in Ohio highlights the specific types of confidential data that should not be disclosed. This may include financial records, customer lists, marketing strategies, trade secrets, business plans, intellectual property, or any information deemed confidential by the business owner. These provisions ensure that the buyer understands the sensitive nature of the information they will receive and acknowledges the potential harm caused by non-compliance. Additionally, the Ohio NCA often addresses the obligations and responsibilities of both parties involved. It may require the buyer to use the confidential information solely for evaluating the potential business opportunity and restrict its use for any other purpose. The agreement also typically includes clauses to prevent the buyer from circumventing the broker and directly approaching the business owner, thereby protecting the broker's commission entitlement. Furthermore, the NCA usually outlines the procedures to be followed in the event of a breach or violation of the agreement. This may include injunctive relief, financial damages, or other legal recourse available under Ohio laws. By including these provisions, the agreement aims to deter the potential buyer from breaching the agreement and to give the business owner and broker the necessary means to seek redress if necessary. While the above description provides a general overview of an Ohio Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer, it's important to note that specific clauses and additional provisions may vary between different agreements. The variations could arise from the individual needs and requirements of the parties involved, the nature of the business being disclosed, or specific industry practices. Therefore, multiple types or variations of the Ohio Nondisclosure and Commission Agreement may exist, tailored to the unique circumstances of each business transaction.
