Confidentiality during the Sale Process

Confidentiality during the Sale Process

Jul 24 2018

If you are considering selling or preparing to sell your business, confidentiality is an important aspect to the process.

When selling your business a Business Broker can help you determine what to disclose and when, while protecting your confidentiality.

A buyer is going to request as much information as possible about the business so they can determine whether to buy and/or at what price.  Because a broker understands the importance of confidentiality when a business is listed for sale, before any information is released to a prospective buyer, the broker will require that a confidentiality agreement be executed.

When selling a business, the buyer's due diligence process can cover a potentially broad spectrum from tax returns, to corporate status, to loan compliance, to employment issues, to customer satisfaction and everything in between.

A broker understands the possible insecurities that can develop with existing relationships, suppliers, customers, and employees once they learn the company is for sale. With the execution of a confidentiality agreement, the prospective buyer is able to access the information needed to make their decision while preventing them the ability to pass on sensitive information about your business. This allows you to continue to maintain productivity, growth, quality of services, customer and employee confidence, as you navigate through the sale process,  thus eliminating potential negative effects to the sale price.

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