Finder's Fee Agreement Template for Malaysia

A Finder's Fee Agreement sets out the payment terms when someone helps connect parties to a successful business deal in Malaysia. It's commonly used when an intermediary introduces potential buyers to sellers, helps source investment opportunities, or connects businesses with valuable partners.

Under Malaysian contract law, these agreements protect both the finder and the paying party by clearly spelling out the fee structure, what counts as a successful introduction, and any time limits. While there's no specific legislation governing finder's fees in Malaysia, they must follow basic contract principles and avoid any elements of illegal brokering or unlicensed financial advisory services.

Use a Finder's Fee Agreement anytime you're connecting people or businesses in Malaysia and expect compensation for making successful introductions. This applies when introducing potential investors to startups, helping companies find acquisition targets, or connecting businesses with strategic partners or prime real estate opportunities.

The agreement becomes essential before sharing any sensitive business information or making introductions. Having it in place protects your right to compensation and prevents disputes by clearly defining what constitutes a successful match, the payment terms, and how long your claim to the fee remains valid. This documentation is particularly important in Malaysia's relationship-driven business environment.

• Finders Agreement: The standard version used for business introductions, featuring adjustable fee structures: flat-rate payments for simple introductions, percentage-based commissions for larger deals, or milestone payments for complex transactions. Can be customized with non-compete clauses, exclusivity periods, and specific success criteria based on Malaysian business practices and deal types.

• Business Intermediaries: Independent consultants, business brokers, or networkers who connect parties and earn fees for successful introductions in Malaysia's business community
• Companies Seeking Connections: Businesses looking for investors, acquisition targets, or strategic partners, who agree to pay fees for valuable introductions
• Legal Advisors: Corporate lawyers who draft and review these agreements to ensure compliance with Malaysian contract law and protect their clients' interests
• Industry Specialists: Sector experts who leverage their networks to facilitate deals in specific markets like real estate, technology, or manufacturing

• Define the Introduction: Clearly specify what type of connection or introduction will trigger the fee obligation
• Set Fee Structure: Determine if it's a flat fee, percentage-based, or milestone payments, aligned with Malaysian market rates
• Timeline Details: Establish the duration of the finder's rights and any exclusivity periods
• Success Criteria: Document exactly what constitutes a successful introduction warranting payment
• Party Information: Gather complete details of all involved parties, including business registration numbers
• Use Our Platform: Generate a customized, legally-sound agreement that includes all mandatory elements under Malaysian law

• Identification Details: Full names, addresses, and registration numbers of all parties involved
• Scope of Services: Clear description of what constitutes a valid introduction or connection
• Fee Structure: Detailed payment terms, calculation method, and timing of payments
• Success Criteria: Specific conditions that trigger the fee obligation
• Duration and Termination: Agreement length and conditions for ending the relationship
• Confidentiality Clause: Protection of sensitive business information shared during introductions
• Governing Law: Explicit statement that Malaysian law governs the agreement
• Dispute Resolution: Process for handling disagreements under Malaysian jurisdiction

A Finder's Fee Agreement differs significantly from an Agency Agreement in several key aspects under Malaysian law. While both involve intermediary relationships, their scope, obligations, and legal implications vary substantially.

• Legal Authority: Finders merely introduce parties and cannot negotiate or close deals, while agents have broader authority to act on behalf of their principal
• Duration of Relationship: Finder agreements typically end once the introduction is made and fee paid, whereas agency relationships often involve ongoing representation
• Liability Scope: Finders bear minimal liability for the ultimate transaction outcome, while agents have fiduciary duties and can be held responsible for their actions
• Payment Structure: Finder's fees are usually one-time payments for successful introductions, while agency agreements often include regular commissions or retainer fees
• Regulatory Requirements: Agency agreements may require specific licenses or registrations under Malaysian law, while finder's arrangements typically don't need special permits