When it comes to selling your company, you need to ensure that your personal and business information remains confidential and does not get into the public domain. If it does, then there are several potential problems with this from staff becoming aware of the business sale as well as competitors finding out too.
Any early business information or listings are often anonymised, similar to this example:
From this kind of information, it is intentionally difficult to identify the business in question. However, as soon as a potential buyer responds to this information, it’s important that the disclosure process happens in the right manner.
Let’s assume you have an enquiry on your company and it seems serious. They may now be asking for more information, possibly for your pre-prepared Information Memorandum, and this is the time you need to get your NDA ready.
We still recommend you fully profile your potential buyer before you send any further information to them. There’s nothing worse than sending business information ‘blind’ and it’s important that this particular interest is serious enough and has the resources to be able to acquire your business at the valuation you are looking for.
So, there is a transaction needed: you need to swap your Information Memorandum with the interested parties’ signing of an NDA to protect your privacy. And the NDA has to happen first before you release any confidential information.
Make sure that it is returned to you signed and completed to your satisfaction before you disclose any further information as, beyond the Information Memorandum, you may well end up sending full accounts, bank statements, client lists and other confidential information to the more serious buyers.
There are two types of NDA which can be used for the purposes of your business sale.
If you would like to download a FREE two way NDA template, then please contact us, and we will send it by return.
Explore the options available to you, improve your chances of successful sale.
If you’re seeking a business to buy, then we can increase your deal flow.
In the early stages of such an important undertaking, it can be a bit of a moral maze: who do you trust?
Firm Gains gave me confidence with detailed advice and support. I would recommend their services to other entrepreneurs seeking to buy a business.Mr T Washington , Founder
I found it much easier to get my head around a business sale this way than talking to my accountant. You speak a language I understand!
Even though the whole process of selling seems daunting, I’ve got more confidence that I’m heading in the right direction.Mrs T Boothe , Founder
Thank you for your email and the excellent advice provided earlier this week. It was immensely helpful and has helped me to plan my future direction for the practice.
I would have no problem whatsoever in recommending your services in the future.Mr & Mrs Halldron , Co-Owners
Firm Gains were recommended to me and I was not disappointed. They were efficient, helpful and effective responding quickly to my request with all the facts that were needed to ensure a stress-free dialogue with our buyer.
What really helped was the advice over and above the valuation, which was immensely valuable and gave me the confidence to proceed. I would not hesitate in recommending them.Mr C Waite , Founder
We found the advice invaluable, which was clear and concise and felt your firm had a good handle on market trends and business sectors.
With also the backup of the secondary services, there was a feeling you had all bases covered if we wanted to proceed with our exit via Management Buy Out (‘MBO’).Mr D Wills , Director
Thank you for your advice. I was just about to sign up to the wrong kind of business agent for a company of our size, but read your post just in time.
I found a more serious partner, with experience in our industry and we’re already using the same language.Mr F Summerscale , Managing Director
We have been greatly impressed by the clear and impartial advice given to us by Firm Gains. After just an initial phone call we felt much better informed, with a new awareness of the many options available to us.
Firm gains understood our situation quickly and clearly and were anything but ‘pushy’. Refreshing compared to what we’d experienced before.Mr C Hutcheson , Managing Director