Finder’s Fee Agreement (Purchase of Shares)
Where a company or sole trader (“purchaser”) wishes to buy all (or a
majority) of the shares in a company engaged in a particular type of
business (in order to own the company or at least have a controlling
interest in it), this Finder’s Fee Agreement (Purchase of Shares) enables a
purchaser to appoint a “finder” to locate and introduce potential sellers
of shares in such a company.
A “finder” acts as an intermediary business broker engaged by the
purchaser. If the finder introduces to the purchaser potential sellers of shares is then made
and the purchaser proceeds to buy the shares, the finder becomes entitled
to a commission payable by the purchaser (the “finder’s fee”) in return for
that successful introduction.
This template document sets out in detail the terms of the appointment of
the finder. These terms are fairly even-handed in the way they protect and
clarify the position of both the purchaser and the finder, and so this form of
agreement is therefore suitable for engaging a finder in either of the
- a purchaser is looking to buy the shares in a company and is appointing a
finder of a seller for that purpose; or
- a sole trader or company in the business of acting as a finder (for purchasers) of sellers of shares in companies. It can use this form as its own standard terms of
business whenever it is appointed as a finder.
However, certain provisions in the template are slightly slanted towards
the finder so that it is particularly suited to being used by a finder as
its standard appointment document.
This form of agreement can be used for appointment of a finder either on an
exclusive basis, i.e. where the purchaser is willing to appoint only one
finder to act for it, or instead on a non-exclusive
appointment, i.e. where the purchaser is to have the freedom to appoint one
or more other intermediaries in addition to the finder. By selecting one of
the alternative sets of wording in the form, you can easily make the
appointment either exclusive or non-exclusive.
This template also contains some optional provisions for inclusion where a
purchaser engages the finder not only to find sellers in return for the
finder’s fee commission, but also where the purchaser wishes to put the
finder on a monthly retainer fee (in addition to paying the finder a commission):
the retainer is payable in return for the finder providing additional
services, e.g. help with negotiation, to ease the path to a successful
purchase of the shares in a company.
There are provisions in the template covering alternative means of setting
the amount of commission payable, advertising by the finder, expenses,
confidentiality, anti-bribery, data processing and other useful clauses.
If the finder is instead to act for the seller of shares in a company, i.e. to
identify potential purchasers of those shares, please see the accompanying
Finder’s Fee Agreement (Sale of Shares)
Optional phrases / clauses are enclosed in square brackets. These should be
read carefully and selected so as to be compatible with one another. Unused
options should be removed from the document.
This Finder’s Fee Agreement (Purchase of Shares) is in open format. Either
enter the requisite details in the highlighted fields or adjust the wording
to suit your purposes.
Once you have purchased access to the appropriate document folder click on
the “Download Document” link below. You will be asked what you want to do
with the file. It is recommended that you save the document to a location
of your choice prior to viewing.