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 Puerto Rico Nondisclosure and Commission Agreement between a business broker and prospective buyer is a legal document that outlines the terms and conditions under which the broker will provide confidential information about a business for sale to the buyer. This agreement also establishes the commission structure and payment terms for the broker's services. The purpose of the agreement is to protect the confidential and sensitive information of the business being sold. Both parties are required to sign this document to ensure that they understand and agree to keep all information regarding the business strictly confidential. The agreement typically includes information such as: 1. Parties involved: The names and contact information of the business broker and prospective buyer are clearly stated. 2. Nature of agreement: It is explicitly mentioned that the purpose of the agreement is to facilitate the exchange of confidential information about the business being sold and to establish the commission terms for the broker's services. 3. Confidentiality obligations: The agreement includes a detailed provision stating that both parties will maintain the confidentiality of all information shared during the course of the business sale process. This includes financial records, customer lists, trade secrets, marketing strategies, and any other proprietary information. 4. Non-disclosure obligations: The agreement outlines the specific actions that the parties agree not to take, such as not disclosing or using confidential information for personal gain or competitive purposes. 5. Exclusions: The agreement may contain a section that specifies certain exceptions to the confidentiality obligations, such as instances where the information is already publicly available or is required to be disclosed by law. 6. Return or destruction of information: A provision may be included, requiring the prospective buyer to return or destroy any tangible or electronic information provided by the broker if the purchase transaction does not progress or if the buyer decides not to pursue the business further. 7. Commission and payment terms: The agreement clearly defines the commission structure agreed upon by the broker and buyer. This includes the percentage or fixed amount of the commission, the total sale price threshold on which the commission is calculated, and any additional fees or expenses that may be involved. It is important to note that there may be different types of Puerto Rico Nondisclosure and Commission Agreement Between Business Broker and Prospective Buyer based on the specific needs and requirements of the parties involved. These variations may include standard agreements provided by brokerage firms or customized agreements developed by individual brokers or attorneys to address unique situations. By signing the Puerto Rico Nondisclosure and Commission Agreement, both parties acknowledge their understanding of the confidential nature of the information exchanged and establish clear guidelines for the broker's services and compensation. This agreement helps protect the business seller's interests and ensures a fair and transparent process for all parties involved.
