Keep this between us

One question that’s generally on the mind of every owner thinking of selling a business is the matter of confidentiality.

The matter of confidentiality is something that should NOT be taken lightly –especially on an in-house basis – when it comes to people you interact with on a regular basis.

World War II poster

At this level, you need to keep mum on your decision to sell until the deal is closed.

During World War II there was a saying that “loose lips sink ships.”

When selling a company, loose lips may very possibly torpedo your ability to get the most money for your company, because it can have an adverse effect on your operations, on your sales, and on your profitability.

Think about the various people you have relationships with, and how they’d react if they knew your business was for sale.

These folks are:

• Your employees.

• Your suppliers and vendors.

• Your customers.

• And, your competitors.

Your workforce will start wondering about job security, which could affect how they deal with customers.

Vendors can also get nervous. They may alter their terms and start demanding cash on delivery.

Customers can lose confidence and go elsewhere.

And what do you suppose your competitors will do if they find out that your company’s for sale?

Until the deal is closed, there are only three people who need to know about your decision to sell.

No. 1 is your attorney.

No. 2 is your outside accountant.

No. 3 is your broker or merger & acquisition intermediary.

When dealing with anyone else, remember the old adage:

“Loose lips sink ships.”

Eric R. Voth is a serial entrepreneur, a private investor, consultant, and writer. He is author of How to Sell Your Privately Owned Company, a Basic Guide for Independent Business Owners, Baby Boomer’s Edition. Eric and his colleagues help a business Seller prepare and groom his or her company prior to offering it for sale or merger – then guide the owner through the actual process. He became involved in this field as a result of merging his own company in 1993.

Advertisements

One Response

  1. […] Today found this great post, here is a quick excerpt : When selling a company, loose lips may very possibly torpedo your ability to get the most money for your company, because it can have an adverse effect on your operations, on your sales, and on your profitability. … Read the rest of this great post Here […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: