Glossary

With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.

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Nondisclosure Agreement (NDA)

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Category: Mergers and Acquisitions

Definition:

A Non-Disclosure Agreement (NDA), also known as a confidentiality agreement or confidential disclosure agreement, is a legal contract between parties that outlines the information that the parties wish to share with each other for certain purposes while restricting the use and disclosure of that information to third parties. In the context of mergers and acquisitions (M&A), NDAs play a crucial role in facilitating the exchange of sensitive information between potential buyers and sellers. Non-disclosure agreements are standard practice in M&A transactions, and parties typically execute them early in the process before engaging in detailed discussions and sharing confidential information. These agreements help balance the need for transparency in negotiations with the imperative to protect proprietary information.