Why is it importance to maintaining Confidentiality in the Business Sale Process?

When a business owner decides to sell their business, one of the biggest issues discussed is how to maintain confidentiality during the process, and states they want the business sale to be done confidentially they mean they don’t want the employees, customers, vendors, lenders, etc. to know the business is being sold or even that it is for sale.
In Selling Property - Asked by Rick F. - Feb 6, 2017
Report Abuse
Answer this Question

Answer(s)

Dennis G.
Broker/Agent
Pasco, WA

At the time a business owner decides to sell and if word gets out people unfortunately get fearful and think the worst and potentially leave having a negative impact on this important asset. Employees might think their job is threaten and look for new employment making it hard to serve clients and can be disruptive. Customers look for another suitable place which has a negative impact on the income statement, It is hard to do in this world of internet advertising and social media but at least as realtors we do not have to make it easy and truly work our book of business for prospective buyers.

Feb 6, 2017
Report Abuse
beahyun c.
Owner/Investor
Fayetteville, NC

price

Feb 9, 2017
Report Abuse
howard k.
Broker/Agent
Framingham, MA

Lots of reasons. They don't want competitors, customers, suppliers, landlords perhaps, and the general public to know. It can be perceived as something may be wrong with the business, and speculation often goes to the negative. Also, if they are negotiating the details with a buyer, they may not want vulnerable information getting out from inside the business, because once someone has "inside" info, they may share it accidentally or intentionally.

Feb 10, 2017
Report Abuse
howard k.
Broker/Agent
Framingham, MA

Lots of reasons. They don't want competitors, customers, suppliers, landlords perhaps, and the general public to know. It can be perceived as something may be wrong with the business, and speculation often goes to the negative. Also, if they are negotiating the details with a buyer, they may not want vulnerable information getting out from inside the business, because once someone has "inside" info, they may share it accidentally or intentionally.

Feb 10, 2017
Report Abuse
Ted H.
Broker/Agent
Tampa, FL

Torturous Interference.

Feb 13, 2017
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question