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.
Wake North Carolina Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer is a legal document that establishes the terms and conditions between a business broker and a prospective buyer in Wake County, North Carolina. This agreement is crucial in protecting the confidentiality of sensitive business information disclosed during the buying process. It ensures that the buyer understands their obligations regarding non-disclosure and outlines the commission structure for the broker's services. This agreement is typically divided into several sections, each serving a specific purpose. The content of the agreement may vary depending on the parties involved and the nature of the transaction. Here are some of the key sections that can be included: 1. Introduction: This section provides a brief overview of the agreement, identifying the parties involved (broker and buyer) and their respective roles. 2. Definition of Terms: It is important to define essential terms used throughout the agreement, such as "Confidential Information" and "Commission," to avoid any potential misunderstanding between the parties. 3. Confidentiality Obligations: This section outlines the buyer's obligation to maintain the information disclosed by the business broker as confidential. It clarifies that the buyer is strictly prohibited from sharing or using the confidential information for any purpose other than evaluating the potential business acquisition. 4. Permitted Use of Information: This section may specify the permissible use of the disclosed information solely for the purpose of evaluating the business and not for any competitive advantage or unauthorized purposes. 5. Non-Disclosure and Non-Compete: In cases where protecting the business seller's interest is crucial, this section may include a non-disclosure and non-compete clause. It prevents the buyer from disclosing the information to third parties or engaging in any competing business activities for a specified time period. 6. Term and Termination: This section outlines the duration of the agreement and the conditions that could lead to its termination, such as completion of the transaction or breach of confidentiality obligations. 7. Broker's Compensation: This section specifies the commission structure and the amount or percentage of the broker's fee that the buyer agrees to pay upon the successful completion of the business acquisition. 8. Governing Law: This section identifies the applicable laws of Wake County, North Carolina, in case of any disputes arising from the agreement. It is essential to consult with an attorney experienced in business transactions to ensure that the Wake North Carolina Nondisclosure and Commission Agreement addresses all relevant legal aspects and safeguards the interests of all parties involved.Wake North Carolina Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer is a legal document that establishes the terms and conditions between a business broker and a prospective buyer in Wake County, North Carolina. This agreement is crucial in protecting the confidentiality of sensitive business information disclosed during the buying process. It ensures that the buyer understands their obligations regarding non-disclosure and outlines the commission structure for the broker's services. This agreement is typically divided into several sections, each serving a specific purpose. The content of the agreement may vary depending on the parties involved and the nature of the transaction. Here are some of the key sections that can be included: 1. Introduction: This section provides a brief overview of the agreement, identifying the parties involved (broker and buyer) and their respective roles. 2. Definition of Terms: It is important to define essential terms used throughout the agreement, such as "Confidential Information" and "Commission," to avoid any potential misunderstanding between the parties. 3. Confidentiality Obligations: This section outlines the buyer's obligation to maintain the information disclosed by the business broker as confidential. It clarifies that the buyer is strictly prohibited from sharing or using the confidential information for any purpose other than evaluating the potential business acquisition. 4. Permitted Use of Information: This section may specify the permissible use of the disclosed information solely for the purpose of evaluating the business and not for any competitive advantage or unauthorized purposes. 5. Non-Disclosure and Non-Compete: In cases where protecting the business seller's interest is crucial, this section may include a non-disclosure and non-compete clause. It prevents the buyer from disclosing the information to third parties or engaging in any competing business activities for a specified time period. 6. Term and Termination: This section outlines the duration of the agreement and the conditions that could lead to its termination, such as completion of the transaction or breach of confidentiality obligations. 7. Broker's Compensation: This section specifies the commission structure and the amount or percentage of the broker's fee that the buyer agrees to pay upon the successful completion of the business acquisition. 8. Governing Law: This section identifies the applicable laws of Wake County, North Carolina, in case of any disputes arising from the agreement. It is essential to consult with an attorney experienced in business transactions to ensure that the Wake North Carolina Nondisclosure and Commission Agreement addresses all relevant legal aspects and safeguards the interests of all parties involved.
