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 Virgin Islands Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer is a legal document that establishes the terms and conditions regarding the confidentiality of sensitive business information and the commission payable to the business broker in the event of a successful transaction. This agreement is commonly used in the context of buying or selling a business in the Virgin Islands. The purpose of this agreement is to protect the business seller's proprietary and confidential information from being disclosed to unauthorized parties. It ensures that the prospective buyer, who has expressed an interest in purchasing the business, will not use or disclose any confidential information obtained during the due diligence process for any purpose other than evaluating the potential transaction. The agreement typically contains various provisions, including the definition of confidential information, the responsibilities of both parties, and the duration of the nondisclosure obligations. Relevant keywords that may be found in such an agreement are: 1. Confidentiality: This agreement emphasizes the importance of maintaining the confidentiality of sensitive information provided by the business seller. It outlines the specific types of information that are considered confidential, such as financial statements, customer lists, trade secrets, and proprietary technology. 2. Non-disclosure: The prospective buyer is required to keep all confidential information strictly confidential and not disclose it to any third parties, including competitors or employees. This provision prohibits the buyer from using the information for personal gain or sharing it with unauthorized individuals. 3. Non-compete: Some agreements may include a non-compete clause that restricts the buyer from engaging in a similar business or directly competing with the seller for a specified period after the transaction. This provision aims to protect the seller's interests and prevent the buyer from unfairly leveraging the acquired information. 4. Indemnification: The agreement may stipulate that the buyer will indemnify the business broker against any claims or damages arising from a breach of the nondisclosure obligations. This clause provides an additional layer of protection for the business broker in case the buyer breaches the confidentiality agreement. 5. Commission: The agreement sets out the terms and conditions under which the business broker will be entitled to a commission. This includes detailing the commission rate or method of calculation, whether it is a flat fee or a percentage of the transaction value, and any other relevant payment terms. It is worth noting that there may be variations of this agreement depending on the specific requirements and circumstances of the parties involved. For example, there could be different versions for asset purchase agreements, stock purchase agreements, or mergers and acquisitions. Each of these variations will have its own unique terms and clauses, tailored to the specific transaction being undertaken.
