New buyer question: NDA required before details — any red flags?

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March 02, 2026

by a searcher from Kennesaw State University in Portland, OR, USA

Hi everyone — quick question from a first-time buyer. I’m having my first interaction with a broker on a potential acquisition. They’re asking me to sign an NDA before sharing the CIM/financials. Is that standard practice? Also, at what stage do you typically see NDAs vs LOIs? In other words, is it normal to sign an NDA well before submitting an LOI, or do some sellers/brokers tie NDA signing to LOI submission? Would appreciate any quick “what’s normal” guidance and any red flags to watch for. Thanks!
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Reply by a searcher
from Columbia University in Bend, OR, USA
Hi @redacted‌. -to add a little more detail to the "Yes" replies, the "C" in CIM swtands for "Confidential", so yes, a NDA is to be expected. That said, I prefer to offer my NDA over the brokers or the seller, but you will still want to read it closely. I like to ensure that I can take the sellers CIM and financials and make my own financial model, teaser and CIM for my investors and financing partners. Make sure you have this ability....Good luck and feel free to reach out if you are looking for help on your search!
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Reply by a searcher
from The University of Chicago in Portland, OR, USA
Yes, it is normal to sign NDA before getting CIM from broker.
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