In the twenty plus years I have been involved in buying and selling businesses, I can only recall a handful of times where an NDA was too ridiculous to sign.
While the fallout is generally not as near catastrophic as they believe it will be for employees, clients and vendors, it is, nevertheless, a sensitive subject and real issue. And so, the NDA provides then with a level of comfort.
NDAs should cover the fundamental aspects of the understanding between the parties and include the following:
Those are the key elements. If the NDA covers those points and does not have anything else that concerns you, then sign the agreement.
One clause I have seen which is something to avoid is when a broker uses the one NDA to cover all businesses he/she may present to a buyer. It doesn’t make sense and is an invitation for ambiguity.
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