Pretoria Business Brokers 

Marketing your Business through Pretoria Business Brokers - Open Mandate

We would like to team up with you and work together on one common goal- to sell your business!
The Selling of a Business can be a complex transaction and has many pitfalls for both the Seller and the Buyer. We at Pretoria Business Brokers have had many years experience selling businesses and wish to make the processes easier for all parties concerned. Our new structures now make it possible to sell your business much quicker with much less red tape, even over long distances.

The marketing of businesses is also risky to the business broker since it is very easy for any potential buyer to approach the seller of a business requesting the seller to sell the business to him without the knowledge of the broker. The result of such an action may be that that the seller sells the business to the interested person without the need to reimburse the broker in any way for the all the work and massive expenses already incurred by him. The "Open Mandate" below now makes provision for the Broker firm to receive a minimum 1% commission if the business is not necessarily sold with the direct aid of the Broker. If we sell your business we get 5% commission (reduced from the normal 10%). If you manage to find a buyer before us we would like you to pay us only 1% commission for working with you and for the efforts and expenses we have put in - this is not compulsory but if you agree we will put in much more effort. We will do all the expensive and difficult work - MARKETING!

Pretoria Business Brokers will advertise and market the business for you and when finding interested buyers, refer such buyers directly to you. You will then assist us in the selling process by providing basic information, management accounts, financials, asset registers and other relevant financial information directly to the buyer. When buyers request specific assistance from PBB with the “Offer to purchase” or Sales agreements processes or any other matters, such assistance will be offered to the buyer. 

Please read through the agreement below. Print, complete, (electronically) sign each page and forward the agreement to us by way of email to louis-k@mweb.co.za or by fax to 0866 124 303.

 

COMMISSION AGREEMENT (Open Mandate)

MEMORANDUM OF AGREEMENT BETWEEN THE SELLER  
being the owner or Legal Representative of  

    
Name of Business  and 

 PRETORIA BUSINESS BROKERS hereinafter referred to as PPB
Address: 508 Atterbury Rd, Menlo Park, Pretoria Tel 012 - 361 0576 - Email: louis-k@mweb.co.za

1. DEFINITIONS:  

  1. Business: Shall mean the business described in paragraph 2 which the seller wishes to sell.
  2. PBB: Shall mean Pretoria Business Brokers, Its staff and management, owned and operated under the Welcome-to-the-Net CC Reg. no. 2000/036387/23.
  3. Seller: Shall mean the owners, trustees, representative, directors or nominees of the business which is to be sold.
  4. Buyer: Shall mean a Person, Business or another legal entity interested to, or who wishes to purchase the business. This includes relations, family members, business partners and related legal entities or related third parties.
  5. Gender shall include both genders male and female and may refer to the singular or plural.

2. SELLERS and BUSINESS DETAIL  (Please complete all fields)

2.1 Sellers full names and Surname:
2.2 Position/Capacity:                       
2.3 Legal Entity: PTY/Sole/Partner  
2.4 Trading Name:                             
2.5 Registration no. of legal entity:  
2.6 Physical address of business:  
2.7 Email Address:                           
2.8 Cell and home phone numbers: Home
2.9  Residential address:                  
2.10 Asking Price for the business: including stock
2.11 Present Stock value                  estimate value
2.12 Average Net Monthly Profit:     Previous 12 months
2.13 Average Turnover                     Previous 12 months
2.14  Where is your business?       
2.15 Type of Business?                   Restaurant/Factory? etc.

3. OBJECT OF MARKETING AND ADVERTISING

Whereas the seller have approached PBB to assist with the advertising and sale of the Business as a going concern, it is agreed and understood as follows: Pretoria Business Brokers will advertise and market the business with the purpose of finding able and willing buyers. When finding such buyers, PBB will refer such buyers directly to the seller who will then be requested to meet the buyer, show the business and provide management accounts, financials, asset registers and other relevant financial information directly to the buyer. PBB’s function shall primarily be to find suitable buyers for the business. 

4. SPECIFIC TERMS AND CONDITIONS

4.1  This is a Open mandate given by the Seller to PBB to advertise, market and sell the business.

4.2   PBB do not need to physically introduce a potential buyer to the seller or physically show the business in person to qualify or to be entitled to commission payment.

5. COMMISSION PAYMENTS shall be payable by the Seller to PBB on the following terms:

5.1   Commission shall be payable as a percentage of the GROSS selling price and will always be based on the selling price including stock. 

5.2 The selling of the business is done as a team effort.  Five percent (5%) shall be payable if PBB referred the buyer to the seller (direct buyer) while one percent (1%) shall be payable if the seller sells the business without the direct aid of PBB (indirect buyer). 

5.3 Commission payable to PBB shall always exclude VAT and shall be shall be payable from FIRST FUNDS received by the seller, even if the seller agrees to fund the purchase price over a period of time. Pro-rata commissions shall be payable on pro-rata transactions.   Commissions due shall be paid over to PBB within 2 working days after receipt of first payments received from the Buyers.

5.4  In the event of a sale without the direct Aid/reference from PBB,  the seller agrees to notify PBB when an offer to purchase has been received, when contracts are signed and when payment has been received for the Business and shall provide PBB with copies thereof.

5.5 The seller acknowledge and understand that PBB may be entitled to commission payments from the buyer as part of an Mandate to find a business and that this will not constitute double commission.

6. VALIDITY PERIODS AND TERMINATION OF THE AGREEMENT

6.1    This Open Mandate to market the business shall be valid for 6 months   but PBB may continue marketing beyond this date until cancelled by way of an email or in writing.

6.2    The seller may cancel this mandate in writing after three months should he decide not to sell the business anymore. Canceling this mandate will not affect PBB’s commission entitlement regarding buyers PBB have already introduced or referred to the business, buyers who have already made a written offer to purchase or who have clearly indicated intent to purchase and who are in the process of generating finance.

6.3   The Seller may appoint and advertise the business with other Business Brokers but will still be liable to pay the commission to PBB as per Clause 5.2 above if the business is sold. 

6.4  The Seller indemnifies Pretoria Business Brokers, its Management and staff from any legal disputes that may arise. All parties concerned submits to the jurisdiction of the Pretoria Magistrate Court.

Signed at on this day of (Month and year)

 ................................................................................                                                 
 Signature of SELLER                   Version                                L.R.A. Kearney (for PBB)

     
This form must be FULLY completed and PRINTED before pressing the submit button below. Then sign the printed pages and fax it to us at 0866 124 303.

Only once this document is properly completed, signed and the faxed document received can we start the marketing processes for your business.

       

 

We offer two Marketing choices: a)  Advert for payment on our website  OR 
                                                        b) "Open Mandate" (Fully completed and signed agreement above) 


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