Finder’s Fee Agreement (Purchase of Shares)

This Finder’s Fee Agreement (Purchase of Shares) is for use where a company or sole trader (the “purchaser”) wants to buy all, or a majority, of the shares in a target company (to own it or to acquire a controlling interest) and appoints a “finder” to locate and introduce potential sellers.

If the finder introduces potential sellers and the purchaser proceeds to buy the shares, the finder becomes entitled to a commission (the “finder’s fee”) payable by the purchaser in return for that successful introduction.

What does Finder’s Fee Agreement (Purchase of Shares) do?

It sets out the detailed terms on which the finder is appointed and clarifies the parties’ respective positions. The terms are broadly even-handed, although some provisions slightly favour the finder (so it can be suitable as a finder’s standard form appointment document).

What does Finder’s Fee Agreement (Purchase of Shares) cover?

• The finder’s appointment to introduce potential sellers of shares and when commission becomes payable.
• Alternative methods for setting the amount of commission.
• Whether the appointment is exclusive or non-exclusive.
• Optional monthly retainer arrangements (in addition to commission) for additional services, such as help with negotiations.
• Advertising by the finder, expenses, confidentiality, anti-bribery and data processing provisions.
• Other provisions supporting the engagement.

When should you use Finder’s Fee Agreement (Purchase of Shares)?

• A purchaser wants to appoint a finder to identify and introduce potential sellers of shares in a target company.
• A professional finder wishes to be appointed on its standard terms to act for purchasers seeking sellers.
• The purchaser wants the flexibility to appoint the finder exclusively or alongside other intermediaries.
• The purchaser wishes to include an optional retainer fee for additional support services, as well as commission.

What else you may need

If the finder is instead acting for the seller (to identify potential purchasers of shares), see Finder’s Fee Agreement (Sale of Shares).

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