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.
Cuyahoga County, Ohio Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer Introduction: In Cuyahoga County, Ohio, a nondisclosure and commission agreement between a business broker and a prospective buyer is crucial when engaging in the sale or acquisition of a business. This legally binding agreement ensures the protection of confidential information, outlines the terms and conditions of commission, and establishes a mutual understanding between the parties involved. Let's explore the key components of the Cuyahoga County, Ohio nondisclosure and commission agreement between a business broker and a prospective buyer. 1. Confidentiality Clause: The nondisclosure aspect of the agreement aims to safeguard sensitive and proprietary information shared between the business broker and the prospective buyer. This clause prohibits the disclosure, dissemination, or use of any confidential information without the prior written consent of the disclosing party. Confidential information may encompass financial records, marketing strategies, customer lists, or trade secrets relating to the business being considered for sale. 2. Non-Circumvention Clause: A non-circumvention clause ensures that the prospective buyer does not bypass the broker's involvement in the transaction. This provision prohibits the prospective buyer from approaching or collaborating with the business owner, employees, suppliers, or other parties associated with the business without the broker's consent. It preserves the broker's right to be the main intermediary in the deal. 3. Non-Compete Clause: The non-compete clause prevents the prospective buyer from engaging in any business activities that directly compete with the business being sold during a specified time frame. This clause helps protect the business owner's interests and ensures that the buyer does not use acquired knowledge or contacts to undermine the business post-acquisition. 4. Commission Terms: The agreement establishes the terms and conditions under which the broker will earn a commission for assisting in the successful sale or purchase of a business. The commission structure may be a percentage of the final sale price, a flat fee, or a combination of both. This section also outlines the payment schedule, any additional fees, and whether the commission is contingent upon the completion of the transaction. Types of Cuyahoga County, Ohio Nondisclosure and Commission Agreements: 1. Standard Nondisclosure and Commission Agreement: This is the most common type of agreement, covering the basic provisions mentioned above. It provides a comprehensive framework to protect both the prospective buyer and the business broker. 2. Exclusive Nondisclosure and Commission Agreement: An exclusive agreement grants the business broker exclusive rights to represent the prospective buyer in the purchase or sale of a business within a defined geographic area or industry. This type of agreement is suitable when the buyer wants the broker's undivided attention and expertise. 3. Limited Term Nondisclosure and Commission Agreement: In cases where the buyer and broker wish to work together for a limited period, whether due to specific circumstances or a trial period, a limited term agreement is feasible. This agreement outlines the agreed-upon duration of collaboration and clarifies the commission structure for that timeframe. Conclusion: A properly drafted Cuyahoga County, Ohio nondisclosure and commission agreement between a business broker and a prospective buyer is essential to protect the interests of all parties involved in a business transaction. It ensures confidentiality, establishes commission terms, and sets boundaries for the involvement of the broker. By having a well-defined agreement, both the buyer and broker can proceed with confidence, knowing that their rights and obligations are secured.Cuyahoga County, Ohio Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer Introduction: In Cuyahoga County, Ohio, a nondisclosure and commission agreement between a business broker and a prospective buyer is crucial when engaging in the sale or acquisition of a business. This legally binding agreement ensures the protection of confidential information, outlines the terms and conditions of commission, and establishes a mutual understanding between the parties involved. Let's explore the key components of the Cuyahoga County, Ohio nondisclosure and commission agreement between a business broker and a prospective buyer. 1. Confidentiality Clause: The nondisclosure aspect of the agreement aims to safeguard sensitive and proprietary information shared between the business broker and the prospective buyer. This clause prohibits the disclosure, dissemination, or use of any confidential information without the prior written consent of the disclosing party. Confidential information may encompass financial records, marketing strategies, customer lists, or trade secrets relating to the business being considered for sale. 2. Non-Circumvention Clause: A non-circumvention clause ensures that the prospective buyer does not bypass the broker's involvement in the transaction. This provision prohibits the prospective buyer from approaching or collaborating with the business owner, employees, suppliers, or other parties associated with the business without the broker's consent. It preserves the broker's right to be the main intermediary in the deal. 3. Non-Compete Clause: The non-compete clause prevents the prospective buyer from engaging in any business activities that directly compete with the business being sold during a specified time frame. This clause helps protect the business owner's interests and ensures that the buyer does not use acquired knowledge or contacts to undermine the business post-acquisition. 4. Commission Terms: The agreement establishes the terms and conditions under which the broker will earn a commission for assisting in the successful sale or purchase of a business. The commission structure may be a percentage of the final sale price, a flat fee, or a combination of both. This section also outlines the payment schedule, any additional fees, and whether the commission is contingent upon the completion of the transaction. Types of Cuyahoga County, Ohio Nondisclosure and Commission Agreements: 1. Standard Nondisclosure and Commission Agreement: This is the most common type of agreement, covering the basic provisions mentioned above. It provides a comprehensive framework to protect both the prospective buyer and the business broker. 2. Exclusive Nondisclosure and Commission Agreement: An exclusive agreement grants the business broker exclusive rights to represent the prospective buyer in the purchase or sale of a business within a defined geographic area or industry. This type of agreement is suitable when the buyer wants the broker's undivided attention and expertise. 3. Limited Term Nondisclosure and Commission Agreement: In cases where the buyer and broker wish to work together for a limited period, whether due to specific circumstances or a trial period, a limited term agreement is feasible. This agreement outlines the agreed-upon duration of collaboration and clarifies the commission structure for that timeframe. Conclusion: A properly drafted Cuyahoga County, Ohio nondisclosure and commission agreement between a business broker and a prospective buyer is essential to protect the interests of all parties involved in a business transaction. It ensures confidentiality, establishes commission terms, and sets boundaries for the involvement of the broker. By having a well-defined agreement, both the buyer and broker can proceed with confidence, knowing that their rights and obligations are secured.
