[email protected]
(800) 239-5085
Schedule a Demo
  • Home
  • About
    • Who We Are
    • Our Story
    • Our Team
    • Testimonials
    • Schedule a Call
  • Features
    • Industry Websites
    • Professional Content
    • Digital Marketing
    • Lead Capture Tools
    • Sales CRM
    • Deal Management
    • Integrated Workflows
    • Listing Promotion
    • Branding & Design
  • Resources
  • Media Kit
  • Contact Us
  • Home
  • About
    • Who We Are
    • Our Story
    • Our Team
    • Testimonials
    • Schedule a Call
  • Features
    • Industry Websites
    • Professional Content
    • Digital Marketing
    • Lead Capture Tools
    • Sales CRM
    • Deal Management
    • Integrated Workflows
    • Listing Promotion
    • Branding & Design
  • Resources
  • Media Kit
  • Contact Us
  • Home
  • About
    • Who We Are
    • Our Story
    • Our Team
    • Testimonials
    • Schedule a Call
  • Features
    • Industry Websites
    • Professional Content
    • Digital Marketing
    • Lead Capture Tools
    • Sales CRM
    • Deal Management
    • Integrated Workflows
    • Listing Promotion
    • Branding & Design
  • Resources
  • Media Kit
  • Contact Us
  • Home
  • About
    • Who We Are
    • Our Story
    • Our Team
    • Testimonials
    • Schedule a Call
  • Features
    • Industry Websites
    • Professional Content
    • Digital Marketing
    • Lead Capture Tools
    • Sales CRM
    • Deal Management
    • Integrated Workflows
    • Listing Promotion
    • Branding & Design
  • Resources
  • Media Kit
  • Contact Us
Blog
Home Seller Articles Effectively Utilizing Confidentiality Agreements
Seller ArticlesSeller FAQSelling a Business

Effectively Utilizing Confidentiality Agreements

Deal Studio October 23, 2019 0 Comments
Partnership. Two Business People Shaking Hand After Business Sig

Every year countless great deals, deals that would have otherwise gone through, are undone due to a failure to properly utilize and follow confidentiality agreements.  A failure to adhere to this essential contract can lead to a myriad of problems.  These issues range from employees discovering that a business is going to be sold and quitting to key customers learning of the potential sale and taking their business elsewhere.  Needless to say, issues such as these can stand in the way of a sale successfully going through.  Maintaining confidentiality throughout the sales process is of paramount importance.

Utilizing a confidentiality agreement, often referred to as a non-disclosure agreement, is a common practice and one that you should fully embrace.  There are many and diverse benefits to working with a business broker; one of those benefits is that business brokers know how to properly use confidentiality agreements and what should be contained within them.

By using a confidentiality agreement, the seller gains protection from a prospective buyer disclosing confidential information during the sales process.  Originally, confidentiality agreements were utilized to prevent prospective buyers from letting the world at large know that a business was for sale. 

Today, these contracts have evolved and now cover an array of potential seller concerns.  A good confidentiality agreement will help to ensure that a prospective buyer doesn’t disclose proprietary information, trade secrets or key information learned about the business during the sales process.

Creating a solid confidentiality agreement is serious business and should not be rushed into.  They should include, first and foremost, what areas are to be covered by the agreement, or in other words what is, and is not confidential.  Additional areas of concern, such as how confidential information will be shared and marked, the remedy for breaches of confidentiality and the terms of the agreement, for example, how long the agreement is to remain enforced, should also be addressed. 

A key area that should not be overlooked when creating a confidentiality agreement is that the prospective buyer will not hire any key people away from the selling company.  Every business and every situation is different.  As a result, confidentiality agreements must be tailored to each business and each situation.

 When it comes to selling a business, few factors are as critical as establishing and maintaining confidentiality.  The last thing any business wants is for its confidential information to land in the hands of a key competitor.  Business brokers understand the value of maintaining confidentiality and know what steps to take to ensure that it is maintained throughout the sales process.

Copyright: Business Brokerage Press, Inc.

giggsy25/BigStock.com

64
2522 Views
The Hidden Benefits of Planning Your Succession StrategyPrevThe Hidden Benefits of Planning Your Succession StrategyOctober 16, 2019
The Importance of GoodwillOctober 30, 2019The Importance of GoodwillNext

Related Posts

transport, business trip, technology and people concept - senior
Selling a Business

“Loose Lips Sink Ships”

The “loose lips” tagline was a common World War II phrase and was on posters...

Deal Studio June 27, 2012
Seller Articles

“Red Flags” in the Sunset

Unlike that poetic title of an old-time standard song, Red Sails in the Sunset, red...

Deal Studio March 22, 2016

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts
  • Maximizing Your Time by Rating Buyer Seriousness January 20, 2021
  • Ownership Transition Survey Results on feedback and answers from family-owned businesses January 7, 2021
  • The Importance of Owner Flexibility December 16, 2020
  • Getting the Most Out of Confidentiality Agreements December 9, 2020
  • How to Optimize Your Chances of Selling Your Business December 2, 2020
Categories
  • Blog 22
  • Buyer Articles 77
  • Buyer FAQ 15
  • Buying a Business 35
  • Content 1
  • Financing the Deal 7
  • General Business Brokerage 9
  • Marketing 6
  • Marketing for Business Brokers 1
  • Promotion 1
  • Seller Articles 219
  • Seller FAQ 35
  • Selling a Business 201
  • Uncategorized 3
  • Using a Professional 6
  • Valuation 15
  • Workflows 1

Automate, accelerate and elevate your deal making
Email [email protected]
Phone (800) 239-5085
Request Media Kit
Features
» Industry Websites
» Professional Content
» Digital Marketing
» Lead Capture Tools
» Sales CRM
» Deal Management
» Integrated Workflows
» Listing Promotion
» Branding & Design
Recent News
  • Maximizing Your Time by Rating Buyer Seriousness
    January 20, 2021
  • Ownership Transition Survey Results on feedback and answers from family-owned businesses
    January 7, 2021
  • The Importance of Owner Flexibility
    December 16, 2020
Newsletter

    Terms of use | Privacy Policy

    © Copyright 2019 Business Brokerage Press, Inc. All Rights Reserved.