NDA (Non-Disclosure Agreement)

When a company expresses interest in the teaser, the M&A advisors prepare the Non-Disclosure Agreement (NDA). The NDA is a legally binding document that ensures buyers cannot disclose or use any information revealed during the rest of the M&A process within a specified period. The central points of an NDA are:

• Use of Information

  • This section stipulates that the information received during the M&A process is protected and may only be used for matters related to the transaction.

• Time Frame

  • Refers to the duration of the NDA and the period during which the restrictions remain legally binding.

• Return of Information

  • This section specifies the process for destroying or returning the information to the seller after the M&A process.

• Permitted Disclosures

  • Outlines which information a buyer may disclose under certain circumstances.

• Restrictions on Collaboration

  • Aims to prevent collaboration between buyers.

The NDA is negotiated between both parties before any contractual obligation is finalized. Once all parties have signed the NDA, they gain access to more detailed information about the company.