Non-Disclosure Agreement (NDA)
A confidentiality agreement a buyer signs before receiving identifying information about a business for sale.
In more detail
The NDA is the gate between the anonymous teaser and everything else. It binds the buyer not to disclose what they learn, not to approach your employees, customers or suppliers, and to use the information only to evaluate the transaction. It is what makes a confidential sale process possible.
If you are selling
Confidentiality is not paranoia. Employees who learn early may leave, and competitors who learn early will use it.
If you are buying
Signing is routine and expected. Read the non-solicitation terms carefully if you already operate in the same market.
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