Confidentiality Agreement (CA)

There are usually at least two CA’s during the transaction process. One is between the investment bank and the client. During an engagement, the client will provide sensitive information to the investment bank. Note: If the client is publicly traded, much of this information typically available to the general public and is not sensitive.

A confidentiality agreement is a promise that the advisor will safeguard the client’s sensitive information. By signing it, the investment bank agrees not to disclose any of it without the client’s written consent.

The other CA used during a transaction is between the investment bank and potential buyer. The potential buyer considering a transaction will be privy to such information to help in its decision-making. This time, the potential buyer makes the promise to safeguard the client’s information.