{{sources exist, date=July 2025
An Irrevocable Fee Protection Agreement (IFPA) is generally applied to an
over-the-counter
Over-the-counter (OTC) drugs are medicines sold directly to a consumer without a requirement for a prescription from a healthcare professional, as opposed to prescription drugs, which may be supplied only to consumers possessing a valid pres ...
commodity
In economics, a commodity is an economic goods, good, usually a resource, that specifically has full or substantial fungibility: that is, the Market (economics), market treats instances of the good as equivalent or nearly so with no regard to w ...
transaction. It is an irrevocable and binding legal agreement between a buyer, a seller and a
business broker
Business brokers, also called business transfer agents, or intermediaries, assist buyers and sellers of privately held businesses in the buying and selling process. They typically estimate the value of the business; advertise it for sale with o ...
.
In an IFPA, the objective is to reach a private agreement for the
placement
Placement may refer to:
* Placement (EDA), an essential step in E-design automation
* Placement exam, determines which class a student should take
* Favored placement, the practice of preferentially listing search engine results for given sites
...
or purchase of a commodity or other piece of
merchandise
Merchandising is any practice which contributes to the sale of Product (business), products ("merch" colloquially) to a retail consumer. At a retail in-store level, merchandising refers to displaying products that are for sale in a creative w ...
that has been clearly identified and negotiated in bulk. The buyer or seller offers a private business broker a fee (either a fixed sum or percentage) for arranging the transaction. The fee is only paid if and when the transaction is completed. The commission and when it will be paid is determined by the aforementioned fee agreement. Usually, the fees are automatically transferred from the buyer's bank account to the business broker when the buyer pays for the product.
Commodity markets