Does anyone have a Consulting Agreement example they can share?

February 24, 2022

by a searcher in Boston, MA, USA

Hello SearchFunders,

I'm looking for some examples where you have put a consultant agreement or business referral compensation agreement in place either before or after a business acquisition.

I have a situation where the current owner has brought on a new client last month with significant cash flow that will add to the bottom line and wanted to rework the whole business purchase price due to this. We came up with a work around which would be a contract outside the P&S to include this new client and any potential business sent to us after the business is acquired. We DO want to keep the previous owner in some capacity because he has a wider network of connections in this space and is a valuable resource to us.

I'm working with my lawyer but he asked for more details outlining the full scope and I'm not sure where to start. I'd love some outside advise on either do this/not that or "I wish I had done x instead."

Thank you!

Reply by a professional
from Dartmouth College in Los Angeles, CA, USA

I would just keep it simple and work out a referral fee based on a % of gross or net sales of customers the owner brings in, with escalators. The agreement itself should be very simple form of consulting or independent contractor agreement with the financial terms in the exhibit. Your lawyer should be able to manage that with very little expense.

Reply by a searcher
from University of Denver in Boston, MA, USA

I can send a consulting agreement. If it's an SBA deal they're not keen on the seller being a key employee beyond a year. Sent you a DM.

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