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 North Carolina Nondisclosure and Commission Agreement between a business broker and a prospective buyer is a legally binding document that establishes the terms and conditions for maintaining confidentiality and the payment of commissions between the two parties in a business transaction. The purpose of this agreement is to protect the seller's confidential and sensitive information about the business being sold. The nondisclosure aspect ensures that the prospective buyer agrees not to disclose or share any information, such as financial records, customer lists, trade secrets, or other proprietary data, with any third party without the written consent of the seller. Furthermore, the agreement outlines the obligations of both the business broker and the prospective buyer to safeguard the information received during the due diligence process. This includes taking necessary precautions to prevent any unauthorized access, loss, or misuse of the disclosed information. In addition to the nondisclosure provisions, the agreement also covers the issue of commission payment. It establishes the terms under which the business broker will be entitled to receive a commission upon the successful completion of the transaction. The commission may be a percentage of the final sale price or a predetermined flat fee, depending on the agreement's terms. There may be different types of North Carolina Nondisclosure and Commission Agreements between business brokers and prospective buyers, which can vary based on specific circumstances or the needs of the parties involved. For example: 1. Short-Form Agreement: A simplified version of the agreement that contains the basic provisions of nondisclosure and commission payment. 2. Standard Agreement: A comprehensive agreement that includes detailed clauses regarding the specific obligations, indemnification, limitation of liability, and dispute resolution mechanisms between the broker and the buyer. 3. Exclusive Agreement: This type of agreement grants the business broker an exclusive right to represent the buyer in the transaction, ensuring that no other brokers are involved. 4. Non-Exclusive Agreement: In contrast to the exclusive agreement, this type allows the prospective buyer to engage multiple brokers simultaneously, increasing the chances of finding suitable business opportunities. Overall, these North Carolina Nondisclosure and Commission Agreements play a crucial role in safeguarding confidential information and establishing the responsibilities of both parties involved in a business transaction. It is important for both the business broker and the prospective buyer to carefully review and understand the terms before signing the agreement to ensure a smooth and protected transaction process.
