Alert
Recommended Alerts
Avoiding Pitfalls of “Use” Clauses in NDAs
Non-disclosure agreements, or NDAs, are essential components of public and private merger and acquisition sale processes, as they facilitate the flow of commercial information from the target to the acquirer for due diligence purposes while protecting the target’s proprietary and competitively sensitive information. Particularly in circumstances where the potential acquirer and target operate in the same industry, the target may be concerned that the information provided to the acquirer for due diligence could be used for another, potentially improper, purpose.