Do Listing Agreements create a Conflict of Interest?

professional profile

November 27, 2025

by a professional from Southern New Hampshire University in Boston Metropolitan Area, USA

Do you feel that the nature of the listing agreement, whereby a commission is paid only if there is a sale, creates a possible conflict of interest? Is there a better way to structure the listing agreement to achieve the objective of the highest price and best terms? Yes, No, or Maybe. I'm looking for feedback from Business Brokers/Intermediaries, Investors, Searchers / Bankers / Tax Advisors, Business Attorneys, and anyone who has experienced the M&A process up close. Kindest regards and Happy New Year!
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Reply by a searcher
from Dartmouth College in Garden Grove, CA, USA
I lean toward “maybe.” Success-only fees can create some pressure for speed, but in practice the broker’s judgment matters far more than the structure. I have also seen small retainers credited at close help balance things without changing incentives too much.
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