New Jersey Business Brokers: Article About Maintaining Confidentiality
Business brokers have the challenging and important task of marketing your business for sale and attracting qualified buyers without identifying your business. It is critically important that employees, customers and competitors do not find out about the sale until the time is right. While it can be difficult to keep the secret about the sale from trusted employees and loyal customers, it is essential to the value of your business. You want your employees to continue to work hard and you want your customers to continue to use your products or services. You do not want anyone getting nervous about a transfer of ownership. Therefore, a business sale should be kept confidential until it is complete. Maintaining confidentiality is not an easy task but our New Jersey business brokers are skilled at maintaining confidentiality and can achieve a successful sale while keeping details including your company name confidential to protect your interests.
Some of the things that business brokers do to maintain confidentiality include:
Creating Blind Listings: there is a fine balance between giving enough information to potential buyers so that they are interested in your company and keeping your business identity confidential. A business broker knows how to find the right balance and protect your interests.
The business brokers from Selby Associates of New Jersey would be happy to answer any question you have about corporate exit planning or business advisory services.
Your broker knows what potential buyers need to know and will not disclose anything more than the important general data like industry, current and historical sales and profits, market segment, etc
Advising You on Employee and Customer Issues: many business owners are concerned about how and when to tell the employees, vendors, suppliers, customers who have been loyal through the years and who may be friends. Your business broker will advise you about who to tell and when so that you protect both your professional and personal interests and so that your employees and customers are also protected.
Identifying Interested Buyers: It is important to find a buyer who is truly interested in your business and who is not simply trying to gain a competitive advantage by finding out as much as possible about your business without any real intention of purchasing the business. Your business broker knows how to tell the difference between a serious potential buyer and one is not interested in actually purchasing your business.
Creating and Requiring a Legal Enforceable Nondisclosure Agreement: Thre comes a point in the process of selling your business when your identity must be disclosed. Potential buyers have the right, after all, to know what it is they are buying. When a serious potential buyer gets to this point in the process, your business broker will have the buyer sign a nondisclosure agreement that legally prevents the buyer from publicly identifying you before the sale is complete.
Maintaining Confidentiality Will Help Your Sale Price: The potential effects of not maintaining confidentiality can be devastating for your business. If the business doesn't sell quickly, your employees may look elsewhere for stable employment and your customers may also look for a company that they are confident will not change ownership.