An NDA (non-disclosure agreement) is a confidentiality contract a prospective buyer signs before a broker or seller shares identifying details, financials, and the CIM of a business for sale. It protects the seller's staff, customers, and competitive information while diligence proceeds.
Worked example
| Step | What you see |
|---|---|
| 1. Teaser | Anonymous one-pager, no company name |
| 2. Sign NDA + buyer profile | Confidentiality agreement executed |
| 3. CIM released | Full financials, name, operations |
No credible broker releases the CIM until the NDA is signed and you've shown you're a qualified buyer.
Why it matters when buying a business
The NDA is your entry ticket to real deal flow, but read it: some bind you against soliciting the seller's employees, contacting customers, or pursuing the business off-market for a period. Signing quickly and professionally signals you're serious, brokers route better deals to buyers who move cleanly from teaser to NDA to LOI.
