Not so when selling a business. Advertise your business for sale and people start to wonder. It creates dangerous uncertainty that can impact your bottom line and jeopardize the business’s very existence.

Increase the likelihood of a successful sale of a business at an optimum price by keeping it confidential. Here’s what could happen if people found out:

Employees. Employees get nervous. They worry their job is disappearing or they won’t get along with a new boss. Before you have a chance to reassure or protect them, some will quit (usually the good ones) and move to jobs that feel more secure.

Any staff turnover is a burden, but losing key staffers is serious. Aside from their direct impact on company performance, key staffers provide valuable continuity and business knowledge that buyers want. Lose them and buyers may go too.

Even if employees don’t quit, work suffers. Allegiance to the company is threatened, and employees may cut back on productivity, steal or engage in other detrimental activity.

Customers. Customers wonder if your business has problems that could threaten their supply chain. They worry they won’t get the same quality from the new owner. Just to be safe, they start looking for other vendors.

Competitors. Once your competitors find out, you can bet they’ll broadcast it to your customers. They’ll say, ‘So and so is selling. I’ve been asking for your business for 10 years now, why don’t you give me a shot?’ This is their best chance to steal business from you.

Vendors and creditors. You may have terms of net 45 or more, beneficial to your cash flow. But once creditors find out your business is for sale, uncertainly rears its ugly head. You might find your terms tightening or notes unexpectedly called due.

The national average time for a business sale is nine to 12 months. If these changes happen early in the process, they can put the company in a downward spiral. Suddenly you’re not only running a business, but you’re busy putting out fires.

That will discourage potential buyers. A buyer wants a successful going concern with very little changes until he/she has an opportunity to make them. Less stability means greater risk and lower purchase offers.

No matter what size the company or what type of business, confidentiality is important. These pitfalls can impact an organization with three employees just as much as three hundred.

To maintain confidentiality, use someone who knows the process, use an intermediary. Your intermediary will market the business in a confidential manner, providing just enough details to attract buyers.

The intermediary should be diligent about screening inquiries to be sure your competitors aren’t fishing for details. Only when seriously interested and qualified buyers are identified, should your advisor share your identity. These buyers must also sign a binding confidentiality agreement that holds them accountable for leaking information.

Maintain business as usual for as long as possible. You want to be in control of how and when your sale is announced, in partnership with your buyer. Minimize uncertainty and walk away with the highest value.

Scott Bushkie is President of Cornerstone Business Services, a low to middle-market M&A firm with offices throughout the upper Midwest. Reach him by telephone at (920) 436-9890 or by e-mail at sbushkie@cornerstone-business.com.