Confidentiality Agreements

Each year numerous deals are undone due to a failure to properly utilize confidentiality agreements. Failure to adhere to this contract can lead to a multitude of problems. Employees can quit because they found out the business is for sale. Key customers can take their business elsewhere if they learn about the potential sale. Issues like these can stand in the way of a sale successfully going through. Maintaining confidentiality throughout the sales process is of utmost importance.

A confidentiality agreement is often referred to as a non-disclosure agreement. Utilizing a confidentiality agreement is a common practice. A business broker knows how to properly use confidentiality agreements and what they should contain.Using a confidentiality agreement helps the seller gain protection during the sales process. It helps prevent prospective buyers from disclosing confidential information.

Originally, the use of a confidentiality agreement was to prevent prospective buyers from letting people know that a business was for sale. Today, these contracts 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.

A solid confidentiality agreement should include what is and is not confidential. Other areas to address are:

  • How confidential information will be shared.
  • The remedy for breaches of confidentiality
  • The terms of the agreement.
  • The prospective buyer will not hire any key people away from the selling company.


Every business and every situation is different. For this reason, confidentiality agreements must be tailored to each business and each situation. When it comes to selling a business, it is critical to maintain confidentiality. EBIT Associates understands the value of maintaining confidentiality. We know what steps to take to maintain confidentiality throughout the sales process.


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