Buyers want a stable business. Once rumors start flying that you might be for sale, employees worry about job security, customers reconsider their contracts, and competitors see a chance to swoop in.
Using an M&A advisor is the first step to maintaining confidentiality. This is the professional in charge of securing NDA agreements, screening buyers, and managing the careful diplomacy of deciding when to reveal information and to whom.
Consider whether you will reveal your plans to any key managers, particularly your finance professional or anyone essential to gathering business data. If so, consult with your advisor about structuring stay bonuses that incentivize these people to support a successful sale.
Other confidentiality tips include securing a private location for meetings, after-hours facility tours, and maintaining a private email and phone number for sale conversations.
