It’s Business, And It’s Personal

NDA an essential part of selling a business

| May 20, 2019 | Buying & Selling Businesses |

Confidentiality is among the most important commodities when it comes to selling a North Carolina business. According to some analysts, businesses that are not known as for sale are worth more than those that are. Confidentiality is also important in another sense. Business owners and entrepreneurs who are selling businesses should never disclose confidential information without having a signed non-disclosure agreement in hand. Prospective buyers should not have access to client or financial information unless they’ve signed an NDA.

Client information and financial information can be used with impunity against the business operation if there is no NDA in place. It can be used to lure clients or plan attack strategies, or it can be sold to others. Disclosing such information without a signed NDA, even to trusted parties, is like giving someone the password to a bank account.

Most serious buyers expect to sign an NDA before purchase and sale negotiations begin in earnest. It is essential to the protection of critical business information. An NDA actually protects both seller and buyer by laying out what kinds of information is considered confidential in the deal. The document should be specific to the business and drafted to address the specifics of the deal.

Someone looking to sell their business in North Carolina might want to retain legal counsel. An attorney with experience in business law may examine the facts of the situation and draft documents to effect the transfer of assets or draft a non-disclosure agreement that meets the needs of the client. Buying and selling a company can be simple or complex. An attorney might be able to negotiate the terms of the deal on behalf of the business owner or suggest structuring options to reduce tax obligations on sale proceeds.

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