Sale Of Business In Confidence

There are many reasons a vendor may wish to advertise their business for sale in confidence.
These include risk of suppliers and or clients being unsettled, staff concerned about job security and competitors gaining sensitive information.
A good business broker will ensure adequate confidentiality when advertising your business for sale and will adhere to the following procedures.

1. Discuss all aspects of the client's expectations and clearly advise the procedures and strategies that will be followed.
2. Design a good marketing campaign that highlights the strengths and opportunities of the business without disclosing any information that may identify the business. This will usually include ensuring any geographical references are broad and any photos are suitably generic and or approved by the owner.
3. Potential buyers must sign a very good confidentiality agreement preferably drawn up by a lawyer.
4. The potential buyer initially has a face to face meeting with the broker who will ascertain their credentials to ensure they have the resources to complete the sale and are genuine. The broker then discusses the identity of the potential purchaser to the vendor to ensure the vendor has no concerns.
5. Depending on the complexity and sensitivity of information, it may be released in progressive parts. Some parts may be withheld until the broker is satisfied that the purchaser is likely to proceed.
6. Once a purchaser begins negotiations a period of due diligence begins. Again whoever conducts the due diligence must adhere to the confidentiality agreement.
7. The vendor is kept informed throughout the due diligence process to ensure they are comfortable with information being provided during the various stages.
8. If the purchaser does not ultimately proceed the confidentiality agreement must specify that all information that has been obtained by the prospective purchase be returned to the broker to either hand back to the vendor or destroy.