Business Broker Agreement Sample
As a business owner, you may be considering selling your business and have decided to work with a business broker to help you with the process. Before you sign on the dotted line, it’s important to understand the terms of the business broker agreement. Here is a sample of what you can expect in a business broker agreement:
1. Exclusive Right to Sell: This clause states that the broker has the exclusive right to sell your business during a specified period of time. This means that you cannot work with any other broker or sell your business on your own during this time.
2. Commission: The commission is the fee that the broker will charge for their services, typically a percentage of the sale price. This clause will outline the commission rate and when it is due.
3. Term and Termination: This clause outlines the length of the agreement and the conditions in which it can be terminated by either party.
4. Listing Price: This clause discusses how the listing price of your business will be determined. The broker will typically conduct a valuation of your business and recommend a listing price.
5. Confidentiality: This clause ensures that all information related to the sale of your business will be kept confidential.
6. Representations and Warranties: This clause outlines the representations and warranties that you as the seller are making about your business. This can include financial information, ownership, and legal compliance.
7. Indemnification: This clause protects the broker from any claims or damages resulting from the sale of your business.
8. Governing Law: This clause specifies the state laws that will govern the agreement and any disputes that may arise.
It’s important to carefully review and understand the terms of the business broker agreement before signing. Make sure that the agreement aligns with your expectations and goals for the sale of your business. A reputable broker will be transparent and open to answering any questions you may have about the agreement.