The two key factors when selling a business are professionalism and confidentiality. You will most likely run into problems if either of these two factors are lacking. A breach of confidentiality causes many deals to fall apart.
A breach of confidentiality can adversely impact everyone from vendors and suppliers to creditors. Vendors could change their terms, which could have a negative impact on cash flow. Employees and customers could be concerned about the future of the business. Employees could start looking for new jobs. This situation could lead to changes in management and the loss of key employees. Customers could take their business elsewhere, fearing instability with the business. This could cause revenue problems.
Another area that a breach in confidentiality can effect is your competition. If the competition hears that your business is up for sale, they could look to steal your customers.
Protecting confidentiality is a must. A breach in confidentiality could give potential buyers cold feet. One way to ensure confidentiality is to hire an experienced business broker. They understand the importance of confidentiality.
It may be tempting to sell your business on your own, but by doing so you can damage your businesses’ reputation. The EBIT Associates team knows how to shield your business from breaches of confidentiality. With EBIT, we take confidentiality agreements seriously. We vet and fully pre-qualify all prospective buyers. You will have a much better idea of who you are dealing with and how serious they are about buying your business.