Confidentiality Agreement – The Intermediary’s Role
Prior to any information being disseminated to a potential buyer, a Central Business Brokers intermediary will require that the buyer execute a confidentiality/non-disclosure agreement. This agreement prohibits the release of any information (unless in the public domain) to anyone except their attorney and/or accountant. Both of these professional groups follow a Code of Ethics which prevents them from disclosing any information. We also ask that personal financial statements and corporate balance sheets are supplied to ascertain the buyer’s financial ability to consummate the transaction being contemplated. The background of the buyer and/or the investment/equity group they represent are also important to determine whether they may be a strategic fit. If there is a question about giving information to anyone within the client’s industry, we ask our client for client permission first. If you would like to see a sample confidentiality agreement, please click here.