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Handbook-of-Business-Contracts

Handbook-of-Business-Contracts

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Published by ahemadam
Handbook-of-Business-Contracts
Handbook-of-Business-Contracts

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Published by: ahemadam on Apr 20, 2013
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05/25/2013

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Often, when a company wants to sell its business, “finders” offer to use their best efforts to locate
potential purchasers. This agreement sets forth the specific understanding between the selling business
and the finder or broker. As drafted, the agreement is company-oriented in that it is non-exclusive (you
can use more than one finder). Furthermore, the finder’s fee is not earned unless and until the sale is
consummated.

Why/When should you use it?

Whenever you retain a finder to locate a buyer for your business or are retained as a finder, you should
use this agreement. It should be executed before the finder begins searching for a buyer. It is extremely
important that the parties understand and appreciate their “deal.” For example, if not clearly stated in
the agreement, a finder who delivers a ready, willing, and able buyer for your company, but to whom
you decide not to sell to for whatever reason, might still be entitled to a commission.

Who should use it?

Both the business who retains a finder or broker to locate a buyer for its business and that finder
should use this agreement.

How should you use it?

JIAN AgreementBuilder® - Handbook of Business Contracts

51

If you own or represent a business for sale, and a finder presents you with an agreement, have your
attorney review it before signing. As drafted, this agreement will protect your interests, but a version
given to you by a finder may not.

Important Tips

If you do grant an exclusive right to locate a buyer to the finder, make sure to set a cutoff date, after
which you can use other finders. You may wish to include an addendum with any businesses or
individuals you are currently negotiating with so that the finder cannot later say he brought that party
to you.

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