Open Or Closed Book? When Confidentiality is Paramount in Selling Your Business

Once the decision has been taken to sell yourfor sale marketplaces online. It literally takes
business, it's understandable that you want a quickminutes to get an advert online, but carelessness
and pain free sale. And what better way to get itcould be costly. Sometimes the obvious areas are
sold that to make as much noise about it aseasy to avoid in making any catastrophic
possible right? Well maybe not. Many businessesmistakes i.e posting the actual name of your
rely on solid client and supplier relationships, so asbusiness, the exact location, any product, brand or
much as you want to move on with your exittrademark names associated with your business,
strategy quickly and efficiently, consider a fewspecifying any client names or simply giving too
points that may be a stumbling block on yourmuch detailed information when only the key
route to advertising your business for sale.points will do.
If your business relies solely on a client base thatI recall one example when a small design agency
has been built up over time, and thesewas selling up. They were based in South London,
relationships require stability and longevity, it goesU.K, so there were numerous other businesses in
without saying that confidentiality is paramount.the area and quite honestly, a lot of other similar
Imagine the reaction of your clients if they werecompanies up for sale on the market. They had
to learn that their trusted supplier is about to sellcarefully worded their advert to ensure they
up.sounded attractive to any potential suitors. They
Businesses within the service sector mustused terminology such as "100+ blue chip clients",
consider any sale very carefully. This applies to"£250,000+ net profit per annum" and
the wording and details of any online and off-line"Established business for over 15 years with 5+
advertising, whether any company names orfull-time staff". All good points that will attract
trademarks should be disclosed and even thegood buyers.
location of the business. For example, if yourUnfortunately they made one huge error. With
company is very niche orientated and is selling ortheir advert they posted an image of the interior
supplying a unique offer in a very obscureof their studio workspace. To any client who had
location, it wouldn't take the world's greatestvisited them on a regular basis, it was instantly
detective to work out who and what is up forrecognisable. Within two weeks, a client had
sale. Think carefully about what you disclose downspotted this picture and suspected their trusted
to the finest detail.design agency was up for sale. The phone calls
Businesses within the retail sector are less likely tostarted coming in and it was a very embarrassing
have to concern themselves with this issue assituation. Word spread to other clients and before
they rely on regular foot though by the generalthey knew it, they were putting out fires!
public and don't have that "one-to-one"One slightly ill-considered decision cost them
commitment like many business-to-businessaround 10 clients and £50,000 worth of annual
operations count on. If you run a fashion outlet orturnover. It was a huge mistake, which essentially
a convenience store, your customers mostcut their annual turnover by 10-20%. One
probably wouldn't have any concerns at all if theyseemingly harmless image to try to help attract
learned you were selling up. Simply because youbuyers by showing their swanky, contemporary
do not have that kind of relationship that serviceoffice space cost them big time. Before they
sector businesses expect.could do anything to stop the spread of rumours,
The key areas to consider when selling is thatcompetitors heard the news and the rumours
you give enough information to attract interestedwent out of control. This mistake is a common
parties to contact you for more information. Andone so as tempting as it is to make your online or
if you feel any enquirer is serious and worthoffline business for sale advert attractive by
pursuing, have them discuss confidentiality andadding pictures, videos, download files and client
non-disclosure agreements before giving any reallists, think twice!
details. Protecting yourself when disclosingRemember, your advertisement only needs to
information is paramount and no matter howdetail the key facts because any potential buyer
keen or eager someone is to learn more aboutwants to know just the bare basic facts. The
your business, take every measure possible totype of business on sale, it's general location, size
protect yourself and the value of your business.of operation, turnover and ultimately profit.
You don't want word getting out via bad sourcesEssentially they need to know if their investment
or loose lips.will make a return so don't get carried away with
Whether you have chosen to use a businessthe decoration of adding too much detail as it
broker or advertise a business for sale yourself,could cost you so much more than you bargained
either way, there is no doubt that your businessfor.
will be advertised on some of the many businessGood luck with your sale.