Non Disclosure Agreement

searcher profile

November 09, 2022

by a searcher in Chicago, IL, USA

Hello Searchers.

I am wondering if I should ask the Banks I am speaking with to sign non disclosure agreements?
I feel that they should keep everything confidential because its the nature of their job, but should
I also ask that they sign an NDA or is that overkill in the searcher/M&A space?

Thank you

2
39
303
Replies
39
commentor profile
Reply by an intermediary
from Boise State University in 800 W Main St, Boise, ID 83702, USA
If the deal is an SBA loan, its likely the lender won't sign because it would require legal review and approval and they aren't likely to do that because it is their job to maintain confidentiality. Attempting to add additional restrictions will frustrate them and may make them not want to work with you. (I was a commercial lender for over 20 years prior to becoming a business broker/appraiser.) Commercial banks are required by regulation to keep customer information confidential. When you apply for a loan, you become a customer. Also, the bank is working for you and is your advisor so they have a vested interest in helping you and approving the loan if it makes sense and fits their parameters.
commentor profile
Reply by an intermediary
from The University of Chicago in Chicago, IL, USA
Is this a seller concern or yours?
Your NDA with seller, very likely, covers your advisors.
For smaller transactions (Serach Funder): Banks have a big liability if they breach. For you to ask them, to sign NDA, some will, but you risk coming across as not knowing normal practice. Also, if you ask them to sign your NDA, then they have to pass it through their legal department before they can sign it. If you are really concerned about bank breach and want a peace of mind, ask them if they have their own NDA. This would avoid a legal review.
If a buyer cannot trust a bank, how likely it is that he/she will trust the seller?
commentor profile
+37 more replies.
Join the discussion