Due Diligence and Ongoing Monitoring

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  • 1.  NDA for vendor's we don't share information with.

    This message was posted by a user wishing to remain anonymous
    Posted 11-04-2022 01:16 PM
    This message was posted by a user wishing to remain anonymous

    Why do we need to get an NDA for all of our vendors? Especially a vendor that we are not sharing any information with?


  • 2.  RE: NDA for vendor's we don't share information with.

    Posted 11-04-2022 03:53 PM
    You don't need NDAs for all.

    But the vendor might be sharing information with you that they feel needs protection; IP, trade secrets, SOC report etc.
    Keep in mind you can only get a SSAE18 SOC 1 or 2 report if there's a contract; so an NDA is advisable as a means to cover that requirement. 
    A SOC 3 report can be shared publicly, but it's useless for Due Diligence. :-) 
     
    Also, a good practice is to expressly state the reason for the information sharing, so it's clear what's being protected. 
    Helps with enforceability should you need it... 

    That said, your master agreement is likely going to cover confidentiality; so if there's nothing sensitive being shared during the sales process; I'd rather just work on the master terms. 

    Good Luck!

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    Bradley Martin
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