There are many moving parts to selling a business. During negotiations, you might have to provide confidential, proprietary information to potential buyers. But how can you be sure that this information will not be disclosed to others? Consider having your business lawyer draw up business sale non-disclosure agreements on an as-needed basis.
Your Company’s Proprietary Information
Your business likely has information it does not want anyone else to have. Confidential information could take the form of the following:
- Internal business protocols,
- Salary information,
- Sales and client lists,
- Sales and marketing materials,
- Software,
- Trade secrets,
- Databases and algorithms, and
- Intellectual property.
Potential buyers generally want to conduct thorough due diligence before making a deal. This process often includes in-depth reviews of confidential information.
As a business owner, you can understand why interested parties want to do a deep dive into your company. However, disclosing this type of information has its risks. Strong business sale non-disclosure agreements can alleviate some of the danger.
The Protection of Business Sale Non-Disclosure Agreements
Business owners often ask employees, investors, and service providers to sign non-disclosure agreements. However, it’s especially important to have a business sale non-disclosure agreement. The information you release to parties interested in buying your business could help them decide whether or not your company is a good fit. If the transaction falls through, the information could be used against your company.
For example, you might provide confidential information about the research and development of new products. This information in the hands of your competitors could put you out of business. Using business sale non-disclosure agreements sends a message to other parties that you are serious about protecting your confidential information. More importantly, your agreement should have spelled out serious consequences to anyone who misuses your information. If necessary, you might even seek compensation from any parties that break the agreement.
Finally, be wary of any interested buyers that refuse to sign a business sale non-disclosure agreement.
Call Us About Your Business Sale Non-Disclosure Agreements
Selling your business is a big deal. We strongly encourage business owners who plan to produce confidential company information to use business sale non-disclosure agreements.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.