The protection of confidential information and trade secrets during the
sale of a company is crucial not only for the position of the target company on the market, but also for the success of
the sale transaction itself. Due to the complexities of the sale process, a
large amount of information is exchanged between the target company as seller
and the (potential) buyers. Confidential information and trade secrets present
the greatest risk, and it is in the target company’s interest that this information
is disclosed gradually. On the other hand, potential buyers seek to obtain as much information as possible as early
as possible in the sale process to facilitate their decision on a future
purchase of the company.
Therefore, it is critical for the success
of the process that the par-
ties strike the right balance
between the amount
of information disclosed and the amount of information withheld in relation to each
stage of the process. In doing so, all parties should be aware of all the risks
and pitfalls involved in protecting confidential information and trade secrets.
Key words: non-disclosure
agreement, sale of a business, trade secret, confidential information, exchange of information, disclosure of information, protection of trade secrets, Trade Secrets Act, Directive (EU)
2016/943.