Finder’s Fee Agreement (Sale of Business)

This Finder’s Fee Agreement (Sale of Business) can be used where a business owner appoints an intermediary (a “finder”, sometimes called a business broker) to identify and introduce one or more potential buyers for the owner’s business. The owner may be a company or a sole trader.

If a buyer introduced by the finder goes on to buy the business, the finder becomes entitled to a commission (the finder’s fee) payable by the owner in return for that successful introduction.

What does Finder’s Fee Agreement (Sale of Business) do?

It sets out the terms on which the finder is engaged and the circumstances in which a finder’s fee becomes payable.

The terms are broadly even-handed, but certain provisions slightly favour the finder, so the template is particularly suited to a finder using it as standard terms of engagement.

What does Finder’s Fee Agreement (Sale of Business) cover?

• Appointment of the finder on an exclusive or non-exclusive basis.
• Finder’s fee commission, including alternative ways of calculating the commission.
• An optional monthly retainer fee, in addition to commission, where the finder provides additional services (for example, assistance with negotiations).
• Advertising by the finder, expenses and confidentiality.
• Anti-bribery and data processing provisions.
• Details of the assets comprising the business to be sold, and other supporting terms.

When should you use Finder’s Fee Agreement (Sale of Business)?

Use this agreement where the subject matter of the transaction is a sale of a business or its assets, and you want to document the finder’s role and the basis on which commission (and, where relevant, a retainer) will be paid.

If the transaction is instead structured as a sale of shares in a company (rather than a sale of the business/assets), a different template may be more appropriate.

Finder’s Fee Agreement (Sale of Business) is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.