similarly, and in connection with the opportunity to sell a business, it is critical for the owner of the business not to provide any confidential information to a prospective purchaser until that party has signed a well-written business sale non disclosure agreement (also known as the nda). when selling a business, the non disclosure agreement will not protect information that a seller provides to a potential buyer before the date the confidentiality agreement is signed. this confidential information is a very valuable asset of the seller’s business, and, while the buyer needs to evaluate such information, it is critical that this information is not disclosed by the buyer to third parties or used by the buyer for any purpose other than evaluating the seller’s business in connection with a potential transaction.

at midstreet, we require each prospective buyer to sign an nda and fill out a questionnaire before we disclose information about any of our business listings. a non-disclosure agreement (nda) prevents buyers from leaking information about your company during the sale of your business by legally binding them to keep what they learn about the business confidential. as part of the buyer vetting process, prospective buyers will be asked to sign an nda and fill out a buyer questionnaire. as we mentioned above, a non-disclosure agreement will protect the confidentiality of your sale. non-disclosure agreements also serve as a way to remind buyers of the promise they are making to keep your information confidential and the repercussions they will face if they don’t.