- By Daren Leng, Senior Business Broker, ABC Business Sales
With the majority of the businesses I sell not wanting to name their business in any marketing material, confidentiality is one of the fundamental aspects in the sales process.
Having previously sold a few of my own businesses, I didn’t want anyone knowing until the deal was done, and here are a few reasons why.
It’s crucial to protect its value, operations, and relationships. Public knowledge of a sale can disrupt customer and supplier relationships, lower employee morale, and provide competitors with an advantage.
To safeguard information, only qualified buyers should receive details after signing a Non-Disclosure Agreement (NDA).
Information should be shared in stages, starting with basic details and revealing more as negotiations progress.
Confidentiality also helps ensure business continuity by minimising operational disruptions and maintaining staff productivity and to avoid losing key people.
A clear communication plan should be in place to manage disclosures if needed.
It’s imperative to ensure I’m fully aware of the parties involved and their intentions before disclosing further information to purchasers.
Moreover, maintaining communication with the vendor to keep them informed of enquiry is crucial.
For more guidance, contact Daren Leng at ABC Business Sales – Your Business Broker of Choice.
- Daren Leng, Senior Business Broker, phone 021 0278 6045 or email darenl@abcbusiness.co.nz.
