NDA Market Trends Observed Over Past Two Quarters (Nov 2025 Update)

Market data from NDAs reviewed by my team over the past few quarters show a continued tightening and standardization of NDA terms across middle-market M&A transactions. My latest analytics reveal several clear directional trends shaping how parties manage confidentiality, information flow, and non-solicitation protections throughout their deal process.

Greater Convergence Around Core Confidentiality Terms

Confidentiality periods have become more uniform. Now, 90% of NDAs reviewed contain a 1.5–2-year NDA term, up from 82% earlier this year. Standard carveouts to the definition of Confidential Information remain largely universal. In fact, 94% of NDAs now expressly reference trade secrets in the definition of Confidential Information.

Tighter Controls on Information Sharing

While more NDAs permit sharing of Confidential Information with affiliates, portfolio companies, and limited partners, sellers are tightening the conditions under which that information can be shared. Requirements for seller consent to share with limited partners, portfolio companies, and debt financing sources have increased. For instance, consent requirements for portfolio companies rose from 53% to 64%, and for debt financing sources, from 37% to 46%.

Expansion and Convergence of Non-Solicitation Protections

Non-solicitation protections are trending upward in both duration and scope. Non-solicit periods of 18–24 months now appear in 89% of NDAs. The scope of restricted employees has broadened. Currently, 83% of non-solicitation protections in NDAs reviewed cover all employees with whom a bidder was in contact or about whom the bidder has received detailed information. Look-back periods for non-solicitation carve-outs for former employees continue to cluster tightly around 6 to 9 months. Flat no-hire clauses are becoming less common, and when they do appear, they cover a narrower group of employees than in the past year.

The Importance of Staying Informed

As M&A professionals, staying informed about these trends is crucial. The landscape is always changing, and understanding these shifts can help us negotiate better terms. By leveraging data and analytics, we can make informed decisions that benefit our clients and streamline the NDA process.

Conclusion

In conclusion, the NDA landscape is evolving. The trends we observe indicate a move toward greater standardization and tightening of terms. This shift can help facilitate smoother transactions. By understanding these changes, we can better serve our clients and close deals faster.

For those interested in diving deeper into these analytics, I encourage you to contact us for more insights.