NDA (Non-Disclosure Agreement)

Definition

A confidentiality contract signed to see a listing's name and financials.

Why It Matters

Signing them is routine, and you will sign dozens, which is exactly why they are worth reading rather than clicking through. Watch for non-solicitation and non-compete creep: a normal NDA protects the seller's identity and financials, but the occasional draft quietly tries to bar you from buying any similar business for years.

In numbers: The NDA behind a $1,400,000 listing typically binds for 2 to 3 years, covers the business's identity and financials, and often bars soliciting its employees; what it must not do is bar you from buying a similar business ever after, and the occasional 5-year, industry-wide draft is why you read before signing.