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.
A Nondisclosure and Commission Agreement is a legal document that is typically used in the state of Alaska between a business broker and a prospective buyer. Its purpose is to protect sensitive and confidential information exchanged during the process of purchasing a business. This agreement establishes the terms and conditions under which the prospective buyer can access and use the information provided by the business broker. The Alaska Nondisclosure and Commission Agreement serve several important functions. Firstly, it ensures that both parties maintain confidentiality throughout the business transaction. This means that the prospective buyer agrees not to disclose any confidential information, such as financial records, customer lists, or trade secrets, to third parties without the written consent of the business broker. Similarly, the business broker commits to maintaining confidentiality in regard to any personal or financial information provided by the buyer. Furthermore, the agreement addresses the issue of commission and compensation. It outlines the fee structure and commission structure that the business broker is entitled to in the event that the prospective buyer successfully purchases the business. The commission is usually a percentage of the total purchase price, and payment terms are specified within the agreement. There may also be different types or variations of the Alaska Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer. Some common variations include: 1. Standard Nondisclosure and Commission Agreement: A generic agreement used between any business broker and prospective buyer to facilitate the sale of a business. It covers the essential confidentiality and compensation terms. 2. Mutual Nondisclosure and Commission Agreement: This type of agreement is used when both parties involved, the business broker and the prospective buyer, exchange confidential information that needs to be protected. Both parties commit to keeping each other's information confidential. 3. Exclusive Nondisclosure and Commission Agreement: This agreement grants exclusivity to the business broker, meaning the prospective buyer is not allowed to work with any other broker during the timeframe specified in the agreement. This ensures that the broker has the sole responsibility for selling the business and protects their commission. It is crucial for both the business broker and prospective buyer to carefully review and understand the terms and conditions outlined in the Alaska Nondisclosure and Commission Agreement before entering into any business transaction. Consulting with legal professionals is advisable to ensure compliance with state laws and to protect the rights and interests of all parties involved.
