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Finder's Fee Agreement Template for Switzerland

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Key Requirements PROMPT example:

Finder's Fee Agreement

I need a finder's fee agreement for a consultant who will introduce potential investors to our startup. The agreement should specify a 5% commission on successful investments, include confidentiality clauses, and outline the payment terms and conditions.

What is a Finder's Fee Agreement?

A Finder's Fee Agreement spells out how someone will be paid for connecting two parties in a successful business deal. Under Swiss law, these contracts are common in real estate, mergers and acquisitions, and private banking, where intermediaries help locate qualified buyers, sellers, or investment opportunities.

The agreement must clearly state the fee structure (usually a percentage of the transaction value), define what counts as a successful introduction, and specify the payment timeline. Swiss courts generally enforce these contracts when they meet basic requirements and don't violate financial regulations, particularly in cases involving licensed business activities or securities trading.

When should you use a Finder's Fee Agreement?

Use a Finder's Fee Agreement when working with intermediaries who connect you to valuable business opportunities in Switzerland. This agreement becomes essential in complex transactions like property deals, company acquisitions, or when seeking high-net-worth banking clients where professional networkers help facilitate introductions.

The timing is crucial - put this agreement in place before the intermediary starts making introductions. Swiss law offers limited protection for verbal fee arrangements, so documenting terms early prevents disputes over commission rates and payment conditions. This is particularly important in regulated sectors like financial services, where clarity about referral relationships is mandatory.

What are the different types of Finder's Fee Agreement?

  • Fixed-Fee Agreements: Set a predetermined payment amount, common in straightforward property deals or single introductions
  • Percentage-Based Agreements: Calculate fees as a portion of deal value, typical in M&A or large transactions
  • Success-Fee Structure: Payment occurs only upon deal completion, popular in investment banking referrals
  • Retainer-Plus-Success: Combines monthly payments with success bonuses, used for ongoing introduction services
  • Industry-Specific Agreements: Tailored to Swiss regulatory requirements in banking, real estate, or corporate finance sectors

Who should typically use a Finder's Fee Agreement?

  • Business Owners: Sign agreements to formalize relationships with intermediaries who help find buyers, investors, or strategic partners
  • Professional Finders: Intermediaries, business brokers, and networkers who connect parties and earn fees for successful introductions
  • Legal Counsel: Draft and review agreements to ensure compliance with Swiss financial regulations and contract law
  • Private Banks: Use these agreements when working with external introducers of high-net-worth clients
  • Real Estate Agencies: Engage independent property scouts to locate potential buyers or premium properties

How do you write a Finder's Fee Agreement?

  • Party Details: Gather full legal names, addresses, and business registration numbers of both the finder and the client
  • Scope Definition: Clearly outline what constitutes a successful introduction and which markets or industries are covered
  • Fee Structure: Document exact payment terms, including percentages, minimum amounts, and payment timing
  • Duration Terms: Specify the agreement's timeframe and any post-termination commission rights
  • Regulatory Check: Verify compliance with Swiss financial regulations, especially for banking or securities introductions
  • Documentation: Set up tracking systems for introductions and successful deals to avoid future disputes

What should be included in a Finder's Fee Agreement?

  • Identification Section: Full legal names and addresses of all parties, including registration numbers for businesses
  • Service Definition: Precise description of introduction services and target opportunities
  • Success Criteria: Clear parameters defining what constitutes a successful introduction
  • Compensation Terms: Detailed fee structure, payment timing, and conditions for earning commission
  • Duration Clause: Agreement period, renewal terms, and termination conditions
  • Confidentiality: Protection of sensitive business information and contact details
  • Governing Law: Explicit reference to Swiss law and jurisdiction for dispute resolution
  • Signature Block: Space for dated signatures with proper authority documentation

What's the difference between a Finder's Fee Agreement and a Broker Agreement?

A Finder's Fee Agreement differs significantly from a Broker Agreement in several key aspects under Swiss law. While both involve intermediary services, they serve distinct purposes and carry different legal obligations.

  • Scope of Services: Finders simply introduce parties and step away, while brokers actively participate in negotiating and closing deals
  • Regulatory Requirements: Brokers often need specific licenses or registrations under Swiss financial regulations; finders typically don't require special permits
  • Legal Responsibility: Brokers assume fiduciary duties and liability for transaction outcomes, while finders bear no responsibility after the introduction
  • Compensation Structure: Broker fees usually include ongoing services and success-based elements, whereas finder's fees are typically one-time payments for successful introductions
  • Documentation Requirements: Broker agreements need more extensive terms covering regulatory compliance and ongoing obligations, while finder's agreements focus mainly on introduction terms and payment conditions

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