What do you ask for from a prospect before allowing them to view financial statements on a currently operating

This is a restaurant. Selling the real estate and business.
In Selling Property - Asked by Karen W. - Jun 17, 2014
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Steve C.
Frederick, MD

Typically, the prospect is asked to sign a non-disclosure agreement (NDA), also known as a confidentiality agreement (CA). It is a contract through which the parties agree not to disclose information covered by the agreement, such as the name of the restaurant/business, it’s location or any of the financial information regarding income, expenses, etc. You can do a search in the internet to locate several examples that you can customize for your situation.

Jun 17, 2014
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Ed B.
Fernandina Beach, FL

I might try to make sure the buyer isn't researching for a competing business or franchise...then, depending, might allow to see, but not furnish full copies. Non disclosure agreement is worth having, but if the buyer is researching the business......

Jul 3, 2014
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Karl-Heinz F, K.
Salt Lake City, UT

Karen, Please feel free to contact me for a more detailed and accurate answer. Both Edward and Steve have given great responses. I have found that there are many variables when selling or buying both the real estate and the business therein. After forty years as a Realtor, I have concluded that listening is much more important then speaking, until you have the facts, as related to the specific question that needs to be answered. Thank you for asking me directly, as advice is still free:-) UtahRealtorKing@gmail.com Respectfully, Karl-Heinz

Jul 24, 2014
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Bolingbrook, IL

It all comes down to one thing, the seller. Some sellers are very flexible and they leave it to the brokers to decide (in this case, seller is just tired of the business and wants to be done with it asap.) And some sellers are just very tight lipped and want everything to go through them (in this case, things can get little crazy and you can lose some good credible buyers.)
That being said, I would say it is a mix of a judgement call and a signed CA. Keep in mind that if buyer/s has ill intentions (and some do), they will go around you and do whatever. Realistically, most of the CA/s are not even enforceable as people believe they are.

Aug 4, 2014
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