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Selling Your Company Confidentially


Learn to maintain confidentiality during the sale of your business.

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									      Selling Your
  Company Confidentially

    Protecting the Value of Your Business

Visit us to get your free guide to selling your
Company owners often make errors during transactions involving their businesses. One of
the most serious is the failure to maintain confidentiality during a transaction. Failing to
maintain confidentiality throughout the course of a sale can jeopardize the entire transaction.
 More business owners should ask themselves “how can I maintain confidentiality while I sell
my business?”

It is vital that the sale of your business remains confidential to only those that have to make
decisions regarding the sale. While a sale can often be positive outcome for all, customers,
employees, and suppliers can and do react negatively to the leaked news of a sale.

Realistically, the rumors of a sale are often much worse for a company to address than coping
with a concluded sale.

Customers become less likely to conduct business with companies that they know are for sale
because of the uncertainty of new ownership. Will they like the buyer as much as they liked
the seller? Will the company’s quality or level of service decrease? Will the business change
its product mix?

Employees will also react negatively, fearing layoffs or worse as a result of a sale. In actuality,
most new owners want to retain employees as they are often a very valuable asset to the
continued success of the business. Employees that hear rumors of a transaction may leave
the company, creating turmoil for the seller and the buyer.

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Suppliers may be concerned with receiving payments from the exiting owner and the
creditworthiness of a new owner. Suppliers may be hesitant to negotiate improved terms
with an outgoing owner; they would prefer to hold off until new ownership is in place.

During the crucial moments of a sale, an owner will not want any commotion from any of its
key stakeholders. Consequently, maintaining confidentiality is crucial.

How do you ensure confidentiality of the sale of your business?

The first step is to retain an experienced M&A advisor. Merger professionals are highly
concerned with maintaining confidentiality. Transactions that aren’t kept confidential often
fail. Professional advisors can market your company with discretion; generating interest in
your company without identifying your identity in the business community. Additionally,
they meet and screen potential buyers to ensure these buyers are truly qualified and
interested, before specific information about your company starts to be revealed. Finally,
professional advisors can ensure that meetings and other communications are conducted
very privately and discreetly during all phases of the business sale, so that only key people are
aware of the potential transaction.

Although business owners can try to maintain high levels of confidentiality without outside
assistance, it is difficult to do so. Even if the owner understands the actions necessary to
maximize confidentiality, owners can breach confidentiality simply by making a phone call or
sending an e-mail. Consequently, hiring a skilled merger professional can be a great benefit
to selling a business.
(photo by Sir.Mo)

Brought to you by: Merger Advisors Network – Visit our website:
          Visit us to get your free guide to selling your


Brought to you by: Merger Advisors Network – Visit our website:

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