Confidentiality Agreements in Financing Transactions

Summary

This practice note discusses the use of confidentiality agreements in financing transactions. A confidentiality agreement, sometimes called a non-disclosure agreement, is entered into between parties to a potential transaction to ensure that information delivered during negotiations is kept confidential and is used by the recipient solely for the purpose of deciding whether or not to participate in the transaction. Confidentiality agreements are used in a variety of business transactions, including mergers and acquisitions, new product development, and investments in the capital markets. This practice note focuses on confidentiality agreements used by borrowers and potential lenders contemplating a proposed financing transaction.