Confidentiality of the transfer of a business

Maintaining confidentiality is crucial when transferring a business. While it may be difficult to prove the origin of any confidential information breach, it is important to ensure that the potential buyer signs a confidentiality agreement that protects the transmitted information before sharing any documents.

Moreover, it is essential to include a commitment from the potential buyer not to poach the company’s personnel, especially those in key positions such as sales, technicians, and R&D.

In the context of a business transfer, the buyer must pledge to maintain absolute confidentiality regarding all confidential information and to use it solely for the purpose of evaluating the ongoing project.

Additionally, the potential buyer must agree to return all provided information, whether it was shared in writing or electronically, upon request.

The buyer must also ensure that their collaborators and consultants uphold the same confidentiality commitments.

It should be noted that any information that is already public or becomes public without violating any of the aforementioned confidentiality commitments or published by third parties, and without violating a declaration of confidentiality, is not considered confidential information. The same applies to information made public by the seller.

If you have identified a potential buyer, Actoria Conseil can create a customized confidentiality agreement that suits your specific requirements.