My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Starting a Business

Are there limitations when signing an NDA from a company that is interested in buying me out?

min read
Opinions expressed by Entrepreneur contributors are their own.
Generally, an NDA does not prevent you from sharing your confidential information with others--only the confidential information of the other party. Where you want to be careful with an NDA is in its scope. Here, you'll want your NDA to say that you're sharing information for a particular purpose -- to see if there is a basis for moving forward with a buyout--not for confidential purposes for all time. However, you may not be such an attractive buyout target if you're running around town sharing your confidential information with others. Best to clarify whether you'll be handling one "suitor" at a time or whether you have the right to share the information with others at the same time. Also, you'll want to secure the return of your confidential information within a short time (7-10 days) after you have concluded negotiations (especially if the other company decides not to go forward). As to the royalties, I can't stress enough that you should have an attorney advising you should the negotiations go forward. An attorney who is experienced in your area will have a strong sense of what royalty structures work best (and to your best advantage) for your kind of deal and what's realistic.

More from Entrepreneur

Kim's expertise can help you become a strong leader, pitch VCs for capital, and develop a growth strategy.
Book Your Session

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Are you paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Latest on Entrepreneur