Maintaining confidentiality is very important when selling your business? Once confidentiality is breached it can be difficult, or even impossible, to contain or repair the damage. Confidentiality plays a critical role when selling your business. No business in any industry is exempt from this rule.
Many professionals such as business owners, attorneys, accountants and business brokers are dedicated to maintaining seller confidentiality. A single breach of confidentiality can theoretically destroy a business or can tarnish its reputation and ultimately deflate its value.
Employees, Customers and Suppliers
There are many potential negative ramifications when it becomes public that a business is for sale. Failure of maintaining confidentiality can lead to negative reactions from a range of parties. Key employees, customers and suppliers may begin looking elsewhere. Even the loss of one key employee, customer or supplier could have significant consequences for your business. Employees may start looking for new jobs. Employees may take their knowledge and expertise to a competitor. This may weaken your business.
Employees in key positions may leave. This may create a massive hole in your organization that will be difficult to fill. Key customers and suppliers may take their business elsewhere. All of these variables can combine to negatively impact your bottom line and decrease the value of your business overnight.
The Competition
There is the very real problem of the competition finding out that you are selling your business. They may share this information with your key suppliers and customers. Your competitors may become very assertive in their quest to steal your customers and take advantage of the situation.
A breach of confidentiality can hamper your ability to sell your business. Business brokers are experts at maintaining confidentiality through all stages of the sales process. EBIT Associates has a proven strategy that will keep the news that your business is for sale confidential. We evaluate all prospective buyers. EBIT uses a reliable confidentiality agreement that will protect your best interests. A confidentiality agreement will help maintain secrecy during negotiations.