Representation

Clients who are professionally represented by National Business Brokerage can enjoy the advantage of an experienced advisor and deal facilitator. Professional representation also creates an “Agency” relationship between NBB and their clients. An Agency relationship means that NBB has a fiduciary duty to serve in their clients’ best interests before all others, including its own.

The common law of agency applies no differently to intermediaries than it does to attorneys and C.P.A.s, and sets forth six “Fiduciary Duties”:

1. Full Disclosure:
An agent must reveal all material
information learned about the transaction.

2. Confidentiality:
Matters of price and terms may not be
freely discussed and must be kept confidential.

3. Obedience:
An agent must follow the client’s legal instructions, even if disagreeing with them.

4. Reasonable Care:
An agent must use his/her professional expertise to protect the client against foreseeable risk.

5. Accountability:
An agent is responsible for all funds in
their trust until the transaction is closed.

6. Undivided Loyalty:
An agent must serve the client’s best
interests above all others, including their own.

Agency Relationships (Fiduciaries)
1. Seller’s Agent: represents seller exclusively.
2. Buyer’s Agent: represents buyer exclusively.
3. Dual Agent: Upon agreement by buyer and seller, an agent may represent both in a transaction. As such, they cannot do anything to benefit one that would harm the other. However, duties of confidentiality, full disclosure, reasonable care, accountability and obedience still apply.

It is NBB’s standard policy to disclose their agency relationships during initial meetings with clients. NBB may perform their fiduciary duties in any of the three (3) agency relationships, however, it is NBB’s ordinary practice to act as a dual agent.

An exclusive buyer agency relationship can be accommodated between NBB and a buyer in transactions for purchasing businesses not currently represented by NBB. A retainer fee is required to establish this relationship. Your NBB associate can further explain the details and advantages of professional representation, agency relationships, and NBB retained acquisition search services.

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