Often business owners do not want the fact they are selling or contemplating selling their business to be public knowledge. Business Brokers understand these confidentiality concerns.
There is good reason to maintain confidentiality throughout the process as you don’t want to risk lowering the price of your business. It’s a small world, and one of the biggest mistakes could be staff, suppliers or customers finding out too early. Change can create uncertainty which could lead to staff looking for other job opportunities, suppliers renegotiating contracts, or customers looking elsewhere for your services.
By using a business broker all of this can be managed professionally. They know the industry inside out and have tried and tested confidentiality policies and procedures.
Hide Identifying Details
This starts when writing the advertising. The Broker knows which words to use and knows how to make your business an attractive choice while not revealing anything too crucial. It’s about finding the right balance between, not disclosing too much information while still attracting the right buyer. Specifics will be discussed during due diligence. An advert outlines key points about the business such as industry, key features, and benefits but just enough for an enquirer to want to know more.
Confidentiality Agreements
To find out more the enquirer must sign a confidentiality agreement, which is a legally binding document outlining implications if confidentiality is not met. Once this document is signed, and before disclosing any additional information a Business Broker has specific qualifying questions which can help sort the serious buyers from those that are just curious or can’t afford to buy. There is no direct contact between the buyer and the business which avoids any disclosure.
Release Information Slowly
Once qualified, a summary document will be provided giving key facts about the business but withholding information such as staff details, customer names and full financial reports. As the buyer continues to be interested, or is ready to make an offer, more information can be released. It’s possible to continue to maintain secrecy right through due diligence, depending on the nature of the business. The Business Broker can take control of the confidentiality process and give first-hand guidance on when information should be shared.
It is important to engage with a broker who understands when to release information to potential buyers, and who can help you balance the conflicting needs of marketing and confidentiality. To achieve the best possible outcome, get the business broker to manage the full sale process – as that’s our bread and butter – and leave you, the owner to running your business, without raising any concerns.
