It would not be wise to discuss confidential business information about your business with a potential buyer without first obtaining a signed confidentiality agreement. Picture: Shutterstock.com. The NDA protects the company`s value and the information that is disclosed. This is an essential part of selling a business that protects your confidential data, facts and figures against Deminti. The way a business is sold means that you must disclose various business information that, under normal circumstances, would be treated confidentially by your competitors and the public. There are two alternative provisions that deal with the duration of the agreement. Choose the clause that best suits your needs and delete the other: If you want more information about a confidentiality agreement for your business sale, contact part of the Selling My Business team. We offer free consultations to identify your needs and ensure that your sensitive business information is protected from abuse. The company`s confidentiality agreement, which is not disclosed, requires all parties to the sale of a business to keep the company`s financial information and business secrets confidential for a period after the transaction is completed. In addition, the seller may not want the sale price to be made available to the public at the same time as the financial details of the transaction. In this case, the buyer and seller would be bound by the terms of the confidentiality agreement. The first is: “The ideal situation… It`s having two serious conversations with buyers that take place at the same time when you`re thinking about selling.
“Competition” in the discussion can be extremely valuable to the seller, even if the two potential buyers do not know each other. Your questions, your arguments about value and other outlets can enlighten the seller in a way that might not happen if the conversation is made with one buyer at a time. The purpose of a confidentiality agreement (“NOA”) or confidentiality agreement (“CA”) is to ensure that the information you provide to a potential buyer is no longer disclosed to a party. This preserves the confidentiality of your information, except to the extent to which such disclosure is necessary for the potential buyer to navigate a successful sale.