Glossary

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Open Listing

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In the context of business brokerage contracts, an “open listing” refers to an agreement between a business owner (seller) and a business broker where the seller retains the right to engage multiple brokers to help sell their business. In an open listing arrangement, the seller is not exclusive to any one broker, and they are free to work with multiple brokers simultaneously or even sell the business on their own without paying a commission to any broker. While open listings offer flexibility to sellers, they can also present challenges. Brokers may be less motivated to invest time and resources in marketing and promoting the business if there is no guarantee of exclusivity or a commission. Additionally, potential buyers may be uncertain about the status of the business and whether they are the only party negotiating with the seller. In contrast to open listings, an exclusive listing agreement grants exclusive rights to one broker to represent and sell the business, often providing a more committed and focused approach from the broker. The choice between an open listing and an exclusive listing depends on the seller’s preferences, the nature of the business, and the dynamics of the market.

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