Non-disclosure Agreement

Non-Disclosure Agreement.
At some point most business buyers will be asked to sign a non-disclosure agreememt. This is simply an assurance to a seller that a buyer is obtaining information that is confidential and often personal to a seller. The buyer is stating that he will keep the information in a confidential manner simply using it in an effort to determine further interest in purchasing the business. Unlike home sellers, business sellers generally only want qualified and serious buyers knowing the details of the business or that it is even for sale. The agreement also commits the buyer to directing all communication through the broker or seller. Some sellers have employees that are not aware of the intention of the owner to sell. Other sellers have told the employees. It is always best on the part of the buyer to assume that they do not know of the sale. If the buyer needs assurance that the employees plan to stay that can be a term of due diligence and covered after tentative agreements have been reached on general terms by the buyer and seller.