While many people compare selling a business to the sale of real estate, there is one very significant difference: Confidentiality. Think about it this way: when you are selling your house, you put a big sign out in front of your house in order to attract as much attention as possible. If a seller did the same thing with a business, conditions of uncertainty are created that could negatively impact the value of the business.
It is critically important that the confidentiality of the sale is protected until after the sale is complete in order to protect the value of the business. Obviously, you want to keep the value of the business preserved so that continued success is possible. Additionally, you should want to preserve these additional valuable elements:
- Employees: You want trained employees who know the daily routine and the inner workings of the business. They are a valuable asset to you! It is highly recommended that you do not speak to the employees until after the business transaction has been finalized. When you are ready to make the announcement , you should announce in conjunction with the seller.
- Customers: The sale of a business can significantly disrupt the business’s relationship with it’s customers. By keeping the sale confidential, you can keep the customers from seeking other companies that offer a similar service.
As you can see, confidentiality is critically important to you as the New Owner!
How does Gateway MA keep your confidentiality a top priority?
Gateway’s Brokers and Intermediaries are highly skilled at protecting your proprietary information throughout the Business Selling process. Any and all inquiries made are kept in strict confidence, and our representatives are available after hours and on weekends for meetings. As the process progresses, each party will sign a Confidentiality Agreement, since both parties will be looking at propriety information, including financials. Buyer-Seller meetings are scheduled after-hours so that no employees or customers are on-site. As the transaction nears closing day, outside parties, such as bankers, appraisers, surveyors, or licensing agencies may need to be brought into the transaction. All outside parties are instructed on the confidential nature of the transaction. We cannot control the actions of outside parties and their approvals many be necessary to get the transaction finalized. However, Gateway does everything in it’s power to stress and enforce strict confidentiality.