Finder's Fee Agreement Template for Germany

A Finder's Fee Agreement puts in writing how someone will be paid for connecting two parties in a successful business deal. Under German law, these contracts spell out the commission (usually a percentage) that a finder receives for introducing potential buyers, investors, or business partners who end up completing a transaction.

German courts generally enforce these agreements when they meet specific requirements: the finder must not act as a broker or negotiator, the fee structure must be clear, and the agreement needs to comply with §§ 652-656 of the German Civil Code (BGB). Many German businesses use these agreements for mergers, real estate deals, and investment opportunities while carefully documenting the finder's limited role to avoid broker licensing requirements.

Consider using a Finder's Fee Agreement when someone offers to connect you with potential business partners, investors, or buyers in Germany. This becomes especially important in high-value transactions like property sales, company acquisitions, or major investment deals where the introduction could lead to significant business opportunities.

The agreement protects both parties by clearly defining the finder's role and compensation before any introductions happen. German law requires documenting these arrangements to avoid future disputes about commission claims. It's particularly vital when dealing with international connections or when the potential transaction value exceeds €50,000, as oral agreements become harder to enforce at these levels.

• Fixed Fee Agreements: Set a specific amount payable upon successful introduction, common in real estate and smaller transactions
• Percentage-Based Agreements: Calculate fees as a portion of the final deal value, typically ranging from 1-5% in German markets
• Milestone-Based Agreements: Structure payments around specific transaction stages, popular in M&A deals
• Industry-Specific Agreements: Tailored for sectors like technology or real estate, incorporating relevant German regulatory requirements
• Time-Limited Agreements: Include specific expiration dates for the finder's rights to compensation, protecting all parties long-term

• Business Owners: Sign these agreements when seeking investors, buyers, or strategic partners for their companies
• Professional Networkers: Use finder's fee agreements to formalize their role in connecting businesses, while staying clear of regulated broker activities
• Legal Counsel: Draft and review agreements to ensure compliance with German commercial law and BGB requirements
• Investment Firms: Engage finders to source potential acquisition targets or investment opportunities
• Real Estate Developers: Partner with well-connected individuals to identify property opportunities or potential buyers

• Party Details: Collect full legal names, addresses, and tax identification numbers of both the finder and the company
• Fee Structure: Define exact compensation terms, including percentages or fixed amounts, and specific payment triggers
• Target Description: Clearly describe the desired introduction or connection, including any specific industry or size requirements
• Time Limits: Set clear deadlines for introductions and deal completion to align with German statute of limitations
• Exclusions: List any existing contacts or scenarios where fees won't apply to prevent future disputes
• Documentation: Establish how introductions must be recorded and verified under German law

• Identification Section: Full legal names and addresses of all parties, including tax ID numbers per German requirements
• Service Definition: Precise description of finder's role and limitations to avoid broker classification under German law
• Fee Structure: Clear compensation terms, payment triggers, and calculation methods per BGB §652
• Success Criteria: Specific conditions that constitute a successful introduction leading to payment
• Term and Termination: Agreement duration and conditions for early termination
• Confidentiality Clause: GDPR-compliant data protection and business secret provisions
• Governing Law: Explicit reference to German law and jurisdiction

A Finder's Fee Agreement differs significantly from a Broker Agreement under German law. While both involve connecting parties for business transactions, their roles, responsibilities, and legal requirements are distinct.

• Scope of Services: Finders simply introduce parties and step back, while brokers actively negotiate and facilitate the entire transaction process
• Legal Requirements: Brokers must hold specific licenses under German trading law (Gewerbeordnung), while finders typically don't need special permits
• Fee Structure: Broker fees are often regulated and may include ongoing commissions, while finder's fees are usually one-time payments for successful introductions
• Liability Exposure: Brokers carry significant liability for transaction advice and outcomes, whereas finders bear minimal responsibility beyond making accurate introductions