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Business Broker Agreement Generator for the USA

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Key Requirements PROMPT example:

Business Broker Agreement

"I need a Business Broker Agreement for my tech startup in California, with an exclusive arrangement for 12 months starting January 2025, including specific provisions for handling intellectual property and a success fee structure based on enterprise value."

Document background
This Business Broker Agreement is essential for establishing a professional relationship between business brokers and business owners seeking to sell their enterprises in the United States. The document is typically used when a business owner decides to engage a professional broker to market and facilitate the sale of their business. It includes comprehensive terms covering broker authorization, compensation structures, confidentiality requirements, and service scope. The agreement must comply with various state-specific regulations regarding broker licensing, particularly in states requiring real estate licenses for business brokers. It also needs to address federal requirements, especially when dealing with securities. The document serves as the foundational contract protecting both parties' interests throughout the business sale process and ensuring clarity in their professional relationship.
Suggested Sections

1. Parties: Identification of the business broker and the business owner/seller

2. Background: Context of the agreement and brief description of the business being sold

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope of Services: Terms of broker appointment and detailed description of services to be provided

5. Broker's Rights and Obligations: Specific duties, responsibilities, and authorized activities of the broker

6. Client's Rights and Obligations: Business owner's responsibilities, including information provision and cooperation

7. Compensation and Payment Terms: Commission structure, payment timing, and other fee arrangements

8. Confidentiality: Obligations regarding confidential information and trade secrets

9. Term and Termination: Duration of agreement and circumstances for termination

10. Post-Termination Obligations: Continuing obligations after agreement ends, including tail period provisions

11. Representations and Warranties: Statements of fact and promises by both parties

12. Indemnification: Mutual protection against losses and claims

13. General Provisions: Standard legal clauses including governing law, notices, and amendment procedures

Optional Sections

1. Exclusivity Provisions: Used when broker has exclusive rights to sell the business

2. Marketing Authorization: Specific permissions and restrictions for marketing the business

3. Due Diligence Support: Include when broker will assist with due diligence process

4. Success Fee Structure: For complex commission structures or additional performance-based fees

5. Non-Circumvention: Added when there's significant risk of direct deals with introduced parties

6. International Sales Provisions: Required for businesses marketing to international buyers

7. Real Estate Provisions: When business sale includes real property

8. Intellectual Property Handling: For businesses with significant IP assets

Suggested Schedules

1. Schedule A - Description of Business: Detailed description of the business being offered for sale

2. Schedule B - Commission Structure: Detailed breakdown of commission calculations and payment terms

3. Schedule C - Authorized Marketing Materials: List of approved marketing materials and methods

4. Schedule D - Excluded Parties: List of potential buyers excluded from the agreement

5. Schedule E - Required Disclosures: State-specific required disclosures and forms

6. Appendix 1 - Broker Qualifications: Broker's licenses, certifications, and qualifications

7. Appendix 2 - Service Level Details: Detailed scope of services and performance standards

8. Appendix 3 - Confidentiality Terms: Detailed confidentiality and non-disclosure provisions

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions







































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Relevant Industries

Professional Services

Retail

Manufacturing

Technology

Healthcare

Hospitality

Real Estate

Construction

Transportation

Financial Services

Education

Entertainment

Agriculture

Energy

Relevant Teams

Legal

Finance

Business Development

Mergers & Acquisitions

Corporate Development

Executive Leadership

Sales

Compliance

Risk Management

Relevant Roles

Business Broker

Business Development Manager

M&A Director

Chief Executive Officer

Business Owner

Corporate Lawyer

Chief Financial Officer

Investment Banker

Commercial Director

General Counsel

Business Development Director

Sales Director

Transaction Advisory Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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