Legal Corner

-List Your Site Here! -- Targeted Advertising For Just Pennies A Day! -Tell A Friend - Bookmark This Page

LegalCornerTM - Buy/Sell A Business F.A.Q.'s

Find A Lawyer
Law Area:




Search By:


Q.Why is a confidentiality agreement so important if i'm selling a business?

A.If you are selling a business, a confidentiality agreement is a must. If it becomes known that your business is for sale it can weaken your present business relationships, including those with your employees, customers, vendors, competitors, and creditors. Weakened relationships can quickly destroy a company's position and in turn make it less valuable. To keep a potential business sale confidential, requires all potential buyers to sign a confidentiality agreement, otherwise known as a non-disclosure agreement (NDA). A selling business owner should only disclose a limited amount of information before determining if the potential buyer is legitimate, serious, and a capable of completing the contemplated transaction. If that is the case, a confidentiality agreement should be executed before sensitive financial information and things like your customer and vendor lists are turned over.

small business laws, buy a business, sell a business, buying a business, selling a business, buy a company, sell a company, selling a company, sell a corporation, selling a corporation, buy a corporation, buying a corporation, confidentiality agreement, nda, nondisclosure agreement, non-disclosure agreement

Copyright 1999-2019 Melissa C. Marsh. All Rights Reserved. All Information on this website is subject to a Disclaimer and Use Agreement. This information is provided as general information only and should not be construed as legal advice. We advise you to seek the advice of competent legal counsel to address your own specific questions, facts and circumstances.