If you are planning to buy or sell a business, it is essential to have a business broker agreement in place. This agreement outlines the terms and conditions of the relationship between the business owner and the broker.
A business broker agreement template is a valuable resource for creating a comprehensive agreement that covers all aspects of the deal. In this article, we will discuss some of the key elements that should be included in a business broker agreement template.
1. Services Provided
The agreement should clearly state the services that the business broker will provide. This may include preparing a marketing plan, creating a prospectus, identifying potential buyers or sellers, and negotiating the terms of the deal.
The agreement should outline whether the broker has exclusivity in representing the business owner. Exclusive representation means that the broker is the only one authorized to sell the business for a specified period.
The agreement should clearly state how the business broker will be compensated. This may be a commission based on the sale price of the business or a flat fee. The agreement should also specify when the broker will receive payment.
The agreement should specify the term of the agreement, including the start and end dates. The agreement should also outline any renewals or extensions.
The agreement should include a confidentiality clause that outlines the terms of confidentiality regarding any proprietary or sensitive information shared throughout the business sale process.
The agreement should outline the circumstances under which either the business owner or the broker can terminate the agreement. This may include breach of contract, failure to perform, or mutual agreement.
7. Governing Law and Jurisdiction
The agreement should specify the governing law and jurisdiction in the event of a dispute or legal issue.
In conclusion, a business broker agreement template is an essential document that outlines the terms and conditions of a business sale. It is important to ensure that all the key elements discussed in this article are included in the agreement to protect the interests of both parties. Working with an experienced attorney or business broker can help assure that you have a comprehensive agreement that is legally binding and enforceable.