We, at Kaduri Enterprises, believe that every business owner or investor, should have a trustworthy address for finding the correct business or investor suited for him. We, at Kaduri Enterprises, being the first of this chain giving this service, feel it`s necessary to establish ethical rules for this up and coming industry, using the same rules as apply, in other advanced countries.
Each Business Broker should act to eliminate fraud, false representation or any act that is not ethical in the business arena in which he works.
Brokers should recommend to their clients to consult with professionals, such as accountants, lawyers, tax consultants, etc. to check the financial reports or other relevant material and present them as being objective and legal documents.
The broker should attach a document describing the business, according to the information received from the business owner. This document will be read and signed by the business owner. With his signature, the business owner becomes committed to the data given by him. This document will be given to the investor as a primary document from which he can draw initial information about the business.
A broker representing both parties, is obligated to work in the interests of both parties, must require commissions from both parties and must serve both parties fairly.
A broker representing one side of a transaction, is obligated to work in the best interests of his client. This obligation includes fairness and goes hand in hand with fair business practice with the other parties of the deal.
The broker should determine his commission prior to beginning work and sign a contract with his client, describing his commission, in order to avoid future disagreements.
The broker is forbidden to act in a business environment without divulging to the parties that he is representing a third party as a business broker.
A business broker, interested in making a deal for himself or a family member, must notify the other party that he or his family member will be personally involved in the deal.
Every advertisement the broker places, should have the name of his business, so that all people that reply will know that they are dealing with a broker and not directly with an investor or private business owner.
The broker should participate in most of the meetings between the sides and also allow for private meetings between the parties without his presence.
Discretion should be the guiding light of the business broker. He has an obligation of secrecy to his clients. This obligation also holds true, even for deals that don't reach consummation.
With the increased volume of requests for brokers, we plan to approach the Justice Department of Israel, to adopt these rules and make them law, similar to the laws pertaining to real estate brokers.
We turn to the general public to demand the implementation of these rules. This way we can assure clients a fair deal and they will receive professional and ethical service.