When dealing with mergers and acquisitions, certain precautions should be taken in order to ensure that confidential information is adequately protected as there are likely to be considerable volumes of confidential information that need to be exchanged between the buyer and seller.
We hope that integrity and trust go a long way in any business transaction, but sometimes and unfortunately, they are not enough to keep a prospective deal confidential and the leak of proprietary and non-public information can be disastrous for a business.
The following is a checklist that can help protect confidential information:
Whenever information is to be disclosed, further precautions should be taken, including:
While naming the correct parties to a confidentiality agreement may seem obvious, certain scenarios may call for additional consideration:
There are certain formalities to be complied with when it comes to signing
Confidentiality agreements require the parties to take on many principal undertakings. These include:
In order to ensure that the parties are able to perform their responsibilities, the following considerations should be included, in some form, in the agreement:
And finally, in order to execute the agreement, it should be dated and signed by a duly authorised representative of each party, in duplicate, such that each party keeps a signed copy for their records.
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