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Confidentiality Agreement (Share/Asset Sale)
What is a confidentiality agreement (share/asset sale) and when should you use it?
A Confidentiality Agreement (Share/Asset Sale) can be used to protect a target company’s confidential information when a third party is interested in purchasing either the entire issued share capital or the assets and undertaking of the target company.
You also hear it called a non-disclosure agreement (or NDA).
You should use this agreement if you are sharing confidential information with a company who is interested in buying your business and is looking for you to share information with them to enable them to decide on the purchase.
In such a case you want to ensure that your confidential information is protected
This agreement should be printed on the potential Buyer’s headed paper.
The agreement should be signed by a Director of the Buyer who is authorised to do so and countersigned by a Director of the target company.
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