Do Listing Agreements create a Conflict of Interest?

intermediary profile

November 27, 2025

by an intermediary 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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