Categories: Sell a Business

Truth #2: Confidentiality is Critical.

When employees, vendors and customers learn that your business is for sale, this can create devastating events for the business.

One bar and restaurant lost most of their staff, had credit lines cut and lost over 30% of their sales when it was learned they were for sale. They had to wait almost 2 years to recover to try to sell.

Protecting The Integrity of the Business

To protect the integrity of your business and your revenue, it is best if it is kept confidential that you are selling.

Tips to Keeping the Sale of Your Business Confidential

So when selling the business yourself, you will need to consider how to keep the sale confidential.

Here are 8 tips to keeping it confidential:

  1. Don’t mention details in your marketing ad that would make it easy for a buyer to know it is your business before they have signed the non-disclosure; this includes a picture of the location or interior.
  2. Don’t include a business phone number; use a Google number or a personal cell.
  3. Schedule a time to return calls in a private setting.
  4. Do not disclose you are selling to ANYONE (employees, vendors, customers) until you absolutely have to. If you are a private company, this is after the deal is done.
  5. Do not include information that could be used against you if it was in the hands of a competitor.
  6. Do require a non-disclosure before providing detailed information to any buyer prospect. This is will reduce sharing confidential information with people that are just curious.
  7. Ask for verification to purchase for any sale above $500k before releasing marketing package.
  8. Decide what questions you will ask before a “curious” person before you send a non-disclosure to assure they are qualified to learn about your business.

How Business Brokers do it

Business brokers will use a non-disclosure form when a buyer prospect contacts them for more information about your business.

 TRUTH: An experienced and well trained business broker can process buyers in a confidential manner without employees or others hearing about it. But NO ONE can guarantee 100% confidentiality.

 TRUTH: RPR Associates offers a for sale by owner service to provide the non-disclosure, answer buyer calls, and write your memo for you for a flat fee instead of a percent of the selling price.

 

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Posted on Dec 29, 2013

Contact Info – David Bandars

 12110 Port Grace Blvd. #201, LaVista, NE 68128

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