It’s a question we get asked all the time. Why do you need to know my personal information for the NDA (Non-Disclosure Agreement)?
Sharing personal information can be difficult, especially with a person you have likely never met and only know via conversations on the phone.
Guess what? When you begin your foray into the purchase of a business, you will need to come to a level of comfort with sharing your personal information.
For starters, a business broker will need your full legal name, permanent physical address and email (if not more) before they can send you a non-disclosure agreement to sign. The NDA protects the business from disclosure – of its for-sale status, of its proprietary information and its confidential financial documents to name a few.
To gain access to such a large amount of information a prospective business buyer only needs to offer up the paltry pieces of information listed above – like their name, address and email.
Why? It’s simple. The NDA only works if it can be linked to a specific person. There might be hundreds of men named John Smith in a particular city, but there is only one John Smith who lives at a particular address, has a particular phone number and a specific email.
Many first-time buyers balk at providing their personal information for the NDA, but the reality is you are going to have to get used to sharing your personal information if you want business sellers to share possibly proprietary or confidential information about their businesses with you. The NDA is only the first, and the least intrusive, of the documentation that will be required during the process of buying a business. Down the line you will need proof of your finances for both the seller and your new commercial landlord, you may need to pass a background check and get fingerprinted for certain types of business licensing, you will possibly need to supply a history of your education and work experience, etc.
While it might from the outset seem intrusive, consider the view from the other side of the negotiating table. A business seller has to share everything about their business with you, so asking for some identification as to who you are at the outset isn’t that much of a stretch.
The point here is, while uncomfortable, sharing your personal information is going to be a large part of the business buying process – so the sooner you get used to that fact, the better.
Are you considering buying a business, but aren’t sure you want to share your personal information? Would you like to know more about how your information will be used or shared? Ask us! Feel free to leave any questions or comments and we would be happy to help.
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907