What are the Most Important Elements in a Confidentiality Agreement?
One of the key reasons why you hire a business broker Villa Park is so that he can help with confidentiality management. The last thing you want is for the world to learn about the sale and your trade secrets. A foolproof confidentiality agreement guarantees that the sale remains a secret. However, for this to happen, the confidentiality agreement has to be well worded. At So-Cal Business Brokers we have been selling businesses for more than 20 years. Our team has developed the best strategy for confidentiality management. In our experience, here are the most important elements in a confidentiality agreement.
Type of negotiations
Once you settle on a buyer, you will have to give them permission to take a peek behind the curtains. This will have to be done before the negotiations start. It is for this reason that the type of negotiations has to be at the top of the confidentiality list. You have to define if the negotiations will be open or secret. Our business brokers Villa Park will outline the information that can be revealed and what cannot be revealed by both you and the buyer.
Duration of the agreement
It is imperative that the agreement be 100% clear on when it will be in effect. Our confidentiality agreements are permanently binding. This is because we understand the buyer who might sign it might not be the one who ends up buying the business. A permanently binding confidentiality agreement guarantees word will never get out even after the sale is concluded.
Steps taken in the event of breach
A confidentiality agreement is only as effective as how dire the consequences of breach are. Our business broker Villa Park will not only ensure your confidentiality agreement is legally binding but also ensure there are severe repercussions in case of breach. We do this to ensure prospective buyers take the document seriously.
Patent related information
During due diligence, the potential buyers will learn about your inventions. Our job is to ensure prospective buyers understand that they must maintain confidentiality regarding the patent related information.
Applicable state laws
Not all buyers will come from Orange County. You will get to deal with many buyers from outside the state. The confidentiality agreement should include applicable state laws.
Confidentiality agreements are legally binding. Our team at So-Cal Business Brokers will ensure that it is well worded so that your business secrets are well protected. Give us a call now to take advantage of our free, no-obligation consultation with our experienced business brokers in Orange County.