How Do You Keep the Sale of My Business Confidential?
This is one of the most common questions I get asked by potential business sellers. Most sellers are very concerned about confidentiality. In most cases, the seller does not want their employees and vendors knowing their company is for sale because it can be very destructive to the business. If employees find out, they may panic and think the new owner will get rid of them. As a result, they may try to find another job immediately. If vendors find out, they may be concerned that the business is in financial trouble and they won’t get paid money that may be owed to them.
I do the following things to keep the sale of the business confidential: 1. I advertise to the general public on a “blind” basis, meaning, I never divulge the name or address of the business in my advertisements. 2. I have all potential buyers sign a Confidentiality/Non-Disclosure Agreement (aka CA or NDA) before I release any information to them. This agreement is a promise, signed by potential buyers, that they won’t discuss the business with anyone or divulge confidential information to anyone. It does not mean they have to buy the business. It is just to protect the seller. 3. I pre-qualify all prospective buyers, by having them fill out a Buyer Questionnaire Form, to make sure they have the background and financial capability to buy the business. If they don’t qualify, I will not divulge detailed information to them. The less people who know about the sale the better. After a potential buyer jumps through all of these hoops, then I will release detailed information on the business. Real buyers have no problem filling out my forms. If you would like to explore the possibility of selling your Arizona business, contact me, your Phoenix business broker at 480-707-7721 or [email protected].