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I have a friend who is retiring and selling his business for…

I have a friend who...
I have a friend who is retiring and selling his business for $20 million. The business is rapidly growing and sale price will be $30 million before long. I have many venture capitalist contact, and he offered me a 5% finder's fee of sale price if I connected him with a venture capitalist contact that resulted in sale of his business. I am wondering what information I should get from this business owner before soliciting my venture capitalist contacts. Three things come to mind: (1) A short contract stating business owner agrees to pay me 5% of business sale price as finder's fee; (2) 5 years profit & loss statements; (3) a prospectus of some kind to elicit interest in business purchase on part of venture capitalist prospects.
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Answered in 19 hours by:
1/16/2018
RayAnswers
RayAnswers, Attorney
Category: Business Law
Satisfied Customers: 48,899
Experience: I have 30 years as a business lawyer in Texas
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Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question and respond.

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Yes these are the three 3 things you need. (1) A short contract stating business owner agrees to pay me 5% of business sale price as finder's fee; (2) 5 years profit & loss statements; (3) a prospectus of some kind to elicit interest in business purchase on part of venture capitalist prospects.

If you have these in the agreement you should have valid contract and ability to sue for breach of contract if not paid here.You have the right items included here to make it enforceable.

I appreciate the chance to help you tonight.Thanks again.

If you can positive rate 5 stars it is much appreciated.

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Customer reply replied 7 months ago
Thank you Ray. I have banking contacts in addition to VC contacts, and Wells Fargo wants to step on board and fly a wealth management specialist out to business owner to valuate his company, streamline transaction and ensure all parties in deal are happy, and manage business seller's retiurement portfolio from sales proceeds. In order to protect my interests as business broker and prevent Wells wealth management specialist from meeting business owner and offering to eliminate middlemen (such as myself) and buy the company directly, can you give me any detailed info re: contract type and content I can get in place to prevent this from occurring behind my back?

If you get the short contract you have right to sue for breach of contract here.Thats your best protection here in case you don't get paid here.

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