The Business Broker Listing Agreement is a crucial document used in Indonesian business transactions when a business owner wishes to engage a professional broker to facilitate the sale of their business. This agreement, governed by Indonesian law including the Civil Code (KUHPerdata) and relevant commercial regulations, establishes the formal relationship between the broker and the business owner. It typically includes detailed provisions about the broker's authority to market the business, commission structures, confidentiality requirements, and the specific services to be provided. The document is essential for protecting both parties' interests and ensuring clear communication of expectations and obligations throughout the business sale process. It should be carefully drafted to comply with local regulatory requirements while addressing practical business needs.
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1. Parties: Identification of the business broker and the business owner, including complete legal names, registration numbers, and addresses
2. Background: Context of the agreement, including brief description of the business being listed and the broker's qualifications
3. Definitions: Key terms used throughout the agreement, including 'Listed Business', 'Listing Period', 'Commission', 'Qualified Buyer', etc.
4. Appointment: Terms of the broker's appointment, including exclusivity or non-exclusivity of the listing
5. Listing Period: Duration of the agreement, including start date, end date, and any renewal provisions
6. Broker's Services: Detailed description of services to be provided by the broker
7. Commission Structure: Details of broker's compensation, including percentage rates, minimum fees, and payment terms
8. Seller's Obligations: Business owner's responsibilities, including providing accurate information and cooperation
9. Confidentiality: Provisions regarding handling of confidential business information
10. Marketing Authorization: Permission and terms for marketing the business, including approved methods and materials
11. Representations and Warranties: Statements of fact and guarantees from both parties
12. Termination: Conditions and process for ending the agreement
13. Governing Law and Dispute Resolution: Choice of Indonesian law and method of resolving disputes
14. General Provisions: Standard clauses including notices, amendments, and severability
1. Tail Period: Post-termination period during which commission may still be payable - include when working with sophisticated sellers or high-value businesses
2. Sub-Brokers: Terms for involving other brokers - include when the broker may need to collaborate with other agents
3. International Sales: Additional provisions for international buyers - include when targeting foreign investors
4. Due Diligence Support: Specific terms for broker's role in due diligence - include for complex business sales
5. Success Fee Structure: Additional performance-based compensation - include for high-value transactions
6. Non-Circumvention: Prevents direct deals between seller and broker-introduced buyers - include for high-value listings
7. Force Majeure: Provisions for unforeseen circumstances - include when required by local business practice
1. Schedule A - Business Description: Detailed description of the business, including assets, operations, and key information
2. Schedule B - Listing Price and Terms: Agreed listing price, acceptable price range, and specific terms of sale
3. Schedule C - Commission Schedule: Detailed breakdown of commission structures, including any sliding scales or special circumstances
4. Schedule D - Approved Marketing Materials: List of approved marketing methods and materials, including any restrictions
5. Schedule E - Required Documentation: List of documents the seller must provide for the listing
6. Appendix 1 - Confidentiality Agreement Template: Standard form for potential buyers to sign
7. Appendix 2 - Seller's Disclosure Form: Standard form for seller's disclosures about the business
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