If you are selling your business, you obviously want to have an NDA agreement in place that protects you with sharing confidential information.
The NDA should have some basic clauses that they cannot share confidential information, but shouldn’t be overly restrictive.
Consult an attorney if you want a rock solid NDA.
You want to know how to deal with some prospects who are asking you to modify the NDA, it is best to understand if you have an overly restrictive NDA or if it is just a difficult client.
If you have an overly restrictive NDA compared to standard NDA’s, modify it for them and loosen it up.
One way to do that is to include an independent information clause, which means that if they discover information independently outside of your information, then they are protected.
This is absolutely normal to have and you should not have too much fear regarding that.
However, if you have that in there and it is property specific, and someone is trying to modify it too much, then maybe you need to push back.
The general rule of thumb should be to sell your business to anyone who wants to buy it, and market it to as many people as possible.
That means showing your prospectus to anyone who wants to look at it.
You also need to understand if this is a client you want to get involved with.
If someone is picky about the NDA from the start, that should give you some flags for how they will act with an offer.
You want to push back a little bit when they push back if it is not justified and vet them harder.
See if they budge. If they don’t budge and they don’t seem legitimate, you might want to move on out of fear of them deliberately extracting info.
If they are legitimate but need an NDA changed because of other reasons like SEC registration or something valid, give some leeway or slack.
The main thing is to protect some confidential info by holding it back after you vet thoroughly or get an LOI.
Selling your business alone can be tough to understand these protocols and to protect yourself and your company.
Sometimes it is best to leave it to business broker professionals like JARBLY.
Please reach out to us if you have any questions relating to acquisitions:
Email – [email protected]
Phone – (800) 773-1523
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