What is a finder’s agreement in the context of a sale of a business?

New Jersey business transactions attorney, Harold I. Steinbach, explains how small to medium-size businesses often use finders, not investment bankers, to find buyers for its business.

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In the sale of a small to medium sized business, it’s usually too small for investment bankers to get involved but there’s an industry of finders, people that will match a buyer to a seller. So the finder’s agreement is a seller hiring a finder to find it a purchaser for its business.