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Transactional due diligence is almost always preceded by execution of a nondisclosure agreement (NDA) to protect trade secrets and confidential business information revealed to the potential buyer. Such agreements may be viewed as routine boilerplate—so uncontroversial that they are signed without even review from the legal team. However, due diligence agreements often restrict a potential buyer’s business long after the parties have gone their separate ways. While some restrictions are fair and reasonable, others can be burdensome and leave the potential buyer regretting its failure to think twice before signing the agreement.

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