A mandate to a supplier is an “agent” who acts on behalf of a disclosed principal. A mandate is not just given to a person; (as implied so often). It has to be earned, after a strong relationship has been built from many years of dealing with a “principle supplier”. The mandate agent can only act under the instructions of their principle (supplier) who must disclose to end buyer immediately when the offer is made to an end buyer; and in closing the deal, the “mandate agent” would be paid by the supplier.
The mandate agent gets no commission from the buyer’s side of the deal. A mandate agent has to close many deals in order to get any reasonable commission amount from the supplier. Many intermediaries claim mandate ship because they think being next to the supplier as a mandate agent is putting them in a great position. This is incorrect. An intermediary in a chain deal will make a great deal more money than a mandate agent. The best position in a deal is the “controlling buyer/seller intermediary”.
The buyer/seller must know procedures really well and act in the best interest of all parities on both sides of the deal. Forget about becoming a mandate holder of a principal as it is not a feasible position to hold if you are looking to make the big money. Learn the proper procedures, rules and policies and become the legally defined Buyer/seller.