How to Handle a Breach in Business Confidentiality

​​​​​​​Breaching the business confidentiality agreement means that one party has not followed the terms and conditions of the document. The severity of this situation requires immediate attention from you and your M&A intermediary. There are many common occurrences in which the business confidentiality agreement can be broken, but we have found the two most common ones that could infringe upon your potential deal.


Social Settings

Sometimes in social settings, when people are among friends on the golf course or sipping on cocktails, their mouths can run wild. When someone privy to confidential information about your company runs their mouth, the results can be troublesome.


Improper Buyer Communication

When working with a buyer, be sure to assign specific contacts to them for any questions or concerns about the company. If the buyer calls up an employee who is not involved in the potential deal without the seller’s permission, the employee might become alerted and inform others.


In the event of a business confidentiality breach, your first instinct might be to involve your lawyer and sue the offending individual. Legal disputes are very costly and time consuming, so the best route to take is to work closely with your intermediary to find a solution.


At George and Company, we pride ourselves on our confidentialityContact us in complete confidence about M&A and business brokerage.


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