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Business Broker Engagement Agreement
"I need a Business Broker Engagement Agreement for my technology startup in Bangalore, with specific provisions for international buyer introductions and a 12-month exclusivity period starting March 2025."
1. Parties: Identification of the business broker and the client (owner/seller) with full legal names and addresses
2. Background: Context of the engagement, including brief description of the client's business and intention to engage a business broker
3. Definitions: Key terms used throughout the agreement including 'Business', 'Transaction', 'Commission', 'Confidential Information', etc.
4. Appointment and Scope of Services: Formal appointment of the broker and detailed description of services to be provided
5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination
6. Broker's Rights and Obligations: Detailed responsibilities and commitments of the broker
7. Client's Rights and Obligations: Responsibilities and commitments of the client, including provision of information and cooperation
8. Compensation Structure: Details of broker's fees, commission rates, payment terms, and conditions for commission earning
9. Confidentiality: Obligations regarding confidential information handling and protection
10. Exclusivity: Terms regarding exclusive or non-exclusive nature of the broker's appointment
11. Representations and Warranties: Statements of fact and promises made by both parties
12. Indemnification: Mutual protection and liability provisions
13. Governing Law and Jurisdiction: Applicable law and courts for dispute resolution
14. General Provisions: Standard clauses including notices, amendments, severability, etc.
1. Tail Period Provisions: Terms regarding commission rights for deals completed after agreement termination - include when protecting broker's interests in longer-term deals
2. Sub-Broker Authorization: Terms for engaging sub-brokers or co-brokers - include when broker may need to collaborate with other intermediaries
3. International Transaction Provisions: Special terms for cross-border deals - include when international buyers are likely
4. Success Fee Structure: Additional performance-based compensation terms - include for complex deals with variable outcomes
5. Non-Circumvention: Prevention of direct deals between client and broker-introduced parties - include for high-value transactions
6. Marketing Authorization: Specific permissions for marketing the business - include when extensive marketing is planned
7. Dispute Resolution: Detailed arbitration or mediation procedures - include when parties prefer alternative dispute resolution
1. Schedule A - Business Description: Detailed description of the business being sold, including assets, operations, and key features
2. Schedule B - Commission Structure: Detailed breakdown of commission rates, calculation methods, and payment terms
3. Schedule C - Approved Marketing Materials: List of pre-approved marketing materials and methods
4. Schedule D - Required Due Diligence Documents: Checklist of documents and information the client must provide
5. Schedule E - Excluded Parties: List of potential buyers excluded from the broker agreement
6. Appendix 1 - Confidentiality Agreement Template: Standard NDA to be used with potential buyers
7. Appendix 2 - Progress Report Template: Format for periodic progress reports from broker to client
Authors
Professional Services
Business Consulting
Real Estate
Manufacturing
Retail
Technology
Healthcare
Hospitality
Financial Services
Construction
Education
Transportation and Logistics
Agriculture
Entertainment and Media
Legal
Corporate Development
Mergers & Acquisitions
Finance
Business Development
Compliance
Risk Management
Corporate Secretarial
Executive Leadership
Business Broker
Managing Director
CEO
Business Owner
Corporate Lawyer
Legal Counsel
Business Development Manager
M&A Director
Chief Financial Officer
Company Secretary
Investment Banker
Transaction Advisory Manager
Corporate Development Director
Business Valuation Specialist
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