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Selling Your Company Confidentially

Protecting the Value of Your Business

Visit us to get your free guide to selling your business: http://www.mergeradvisorsnetwork.com/


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. Brought to you by: Merger Advisors Network – Visit our website: http://www.mergeradvisorsnetwork.com/


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: http://www.mergeradvisorsnetwork.com/


Visit us to get your free guide to selling your business: http://www.mergeradvisorsnetwork.com/

Brought to you by: Merger Advisors Network – Visit our website: http://www.mergeradvisorsnetwork.com/


Selling Your Company Confidentially