Protecting Business Confidentiality by NAABB

By Scott Radin, Owner & Founder of the North American of Business Brokers and A.S. Radin & Associates.

The importance of confidentiality at all times during the sales process is the most important ingredient in the successful sale of an existing Business.  This IS NOT a real estate transaction where real estate is posted on public MLS services for everyone to find.  This is a Business with employees, customers, competition and possibly landlords and creditors. By making a Business for sale public, all of the above mentioned entities associated with the Business for sale will be thrown into a “cause and effect “ flow that will permanently harm the Business being sold.

Ask yourself the following questions relating to confidentiality…

  1. How would your employees react if you told them that you are selling?
  2. How would your customers and clients react to you selling?
  3. What would your immediate competition do if they knew that you were selling?
  4. If you have a landlord – how would they react to you selling while under lease?
  5. If you have suppliers etc extending credit – how would they react?

If you answered the following then confidentiality should be vital to you…

  1. They would leave and/or have a negative attitude worried about job security.
  2. They would go elsewhere worried about the quality of the product or service.
  3. They would use in their marketing/advertising/sales to sway Business to them.
  4. They would not be happy and in the worst case could call the lease.
  5. If they are extending credit then they may pull credit and go to COD

The extent to which confidentiality is applied goes well beyond what most Business owners have knowledge of and access to. There are specific forms and agreements that protect confidentiality. There are entire processes that protect confidentiality.

If the engine on your vehicle broke down, would you start replacing parts yourself or would you take it to a reputable mechanic? This is no different than a Business owner attempting to protect his or her confidentiality. Let an expert protect confidentiality at all times

FAILURE TO PROTECT CONFIDENTIALITY WILL RUIN YOUR Business.

By Scott Radin, Owner & Founder of the North American of Business Brokers and A.S. Radin & Associates.

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