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.
A Rhode Island Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer is a contract that outlines the terms and conditions under which a business broker agrees to disclose confidential information about a business to a prospective buyer. This agreement is essential in maintaining the confidentiality of sensitive business information during the selling process. The agreement typically begins with an introduction section, stating the names and addresses of the business broker, the prospective buyer, and the business being sold. It also mentions the purpose of the agreement, which is to facilitate the exchange of confidential information for evaluating the potential acquisition. The Nondisclosure section of the agreement lays out the obligations of both parties regarding the non-disclosure of confidential information. It ensures that the prospective buyer will keep any shared information strictly confidential and not disclose it to any third parties without the written consent of the business broker. Additionally, this section may mention the term of the agreement and any post-termination obligations to maintain confidentiality. The Exclusions section specifies information that is not considered confidential or subject to the non-disclosure obligations. This commonly includes publicly available information or previously known information by the prospective buyer. The Use of Information section highlights how the prospective buyer may use the disclosed information solely for evaluating the potential acquisition and not for any other purposes such as competing with the business or soliciting its employees or customers. The agreement may also cover the issue of ownership of the information. It clarifies that all confidential information provided by the business broker remains the property of the business owner and should be returned promptly upon request or completion of the evaluation process. The Commission section of the agreement outlines the terms and conditions regarding broker fees and commissions. It typically covers the commission rate, payment terms, and circumstances under which the broker is entitled to receive a commission. This section may also specify that the broker's commission is contingent on the successful completion of the business transaction. In Rhode Island, there may not be specific types of Nondisclosure and Commission Agreements between business brokers and prospective buyers. However, there can be variations depending on the specific terms negotiated between the parties, such as different commission rates or additional conditions. Overall, the Rhode Island Nondisclosure and Commission Agreement is a crucial document for protecting the confidentiality of sensitive business information during the process of buying or selling a business. It ensures that both parties understand their obligations and responsibilities and provides a legal framework for the exchange of information leading to a successful business transaction.A Rhode Island Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer is a contract that outlines the terms and conditions under which a business broker agrees to disclose confidential information about a business to a prospective buyer. This agreement is essential in maintaining the confidentiality of sensitive business information during the selling process. The agreement typically begins with an introduction section, stating the names and addresses of the business broker, the prospective buyer, and the business being sold. It also mentions the purpose of the agreement, which is to facilitate the exchange of confidential information for evaluating the potential acquisition. The Nondisclosure section of the agreement lays out the obligations of both parties regarding the non-disclosure of confidential information. It ensures that the prospective buyer will keep any shared information strictly confidential and not disclose it to any third parties without the written consent of the business broker. Additionally, this section may mention the term of the agreement and any post-termination obligations to maintain confidentiality. The Exclusions section specifies information that is not considered confidential or subject to the non-disclosure obligations. This commonly includes publicly available information or previously known information by the prospective buyer. The Use of Information section highlights how the prospective buyer may use the disclosed information solely for evaluating the potential acquisition and not for any other purposes such as competing with the business or soliciting its employees or customers. The agreement may also cover the issue of ownership of the information. It clarifies that all confidential information provided by the business broker remains the property of the business owner and should be returned promptly upon request or completion of the evaluation process. The Commission section of the agreement outlines the terms and conditions regarding broker fees and commissions. It typically covers the commission rate, payment terms, and circumstances under which the broker is entitled to receive a commission. This section may also specify that the broker's commission is contingent on the successful completion of the business transaction. In Rhode Island, there may not be specific types of Nondisclosure and Commission Agreements between business brokers and prospective buyers. However, there can be variations depending on the specific terms negotiated between the parties, such as different commission rates or additional conditions. Overall, the Rhode Island Nondisclosure and Commission Agreement is a crucial document for protecting the confidentiality of sensitive business information during the process of buying or selling a business. It ensures that both parties understand their obligations and responsibilities and provides a legal framework for the exchange of information leading to a successful business transaction.
