Sell Your Business - How to Protect Your Confidentiality and Give the Buyer the Information He Needs

If, after learning the basics about your company, the prospect is interested in buying your business, they will begin to respond to questions and requests for further information.

This creates a problem: the perspective of a legitimate need for details about your business and you have a legitimate need to make sure sensitive information does not get into the wrong hands

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to take into account that all the prospects you talk about your business, only one will actually buy it. However, all the other prospects and will continue to possess knowledge that is shared with them and can not afford to have confidential information such as customer lists, recipes or other trade secrets of getting into the wrong hands.

So the management of disclosure of information about your business, and judging by the manner in which prospects deserve your time and attention are important keys successfully selling their business.

Here are some things you can do to identify the best prospects and provide them with enough information to help them navigate through the buying process.

Send Ask the customer to their questions and requests for more details in writing

To protect confidentiality, I strongly suggest that you tell the customer put his requests / questions in writing. Time is as follows:
• Allows you to think through the answers more thoroughly before responding

• Prevents you from spilling too much information off the top of your head

• means that you will not get a break at the wrong time - imagine if 5 customers have their own sales memorandum and any calls you into the office when they thought the new issue of

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• put all your communication in writing, so there is less likelihood of misunderstandings - you can always refer back to what you actually wrote, rather than trying to remember what you said a few days or weeks before

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• saves you time - some issues will come again and again. Putting their answers in written form will be pre-written answer ready whenever the second or third chances asks the same question.

So, try to keep the initial communication after the sale memorandum is limited to e-mail is quick, confidential and allows you time to think through your answers carefully

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Continue Qualifying Customer throughout the process

the added benefit of asking prospects to submit their questions in writing is that it provides another opportunity to qualify the buyer.

professional will understand your request and happy to cooperate. Many customers already own prospects, or have owned, business and know the importance of confidentiality.

non-professional perspective, on the other hand will often resist this request and pout about the "inconvenience". Also, poor prospects will often submit poorly written or unclear requirements / issues. Although you have a qualification before you send your prospect Sale Memorandum, continue to observe the specification:

** When to communicate with you, it is clear that the time to prepare their questions and comments, or does it seem like you are flying by the seat of their pants?

** Do they respect your time and the need for confidentiality, or do they call or show up unannounced?

** If the problem with your price, recast the financial statements or other elements of your offer, that they make a reasonable case for the opposition, or are they just fishing for a low ball price

At the end you will accept a letter of intent from one customer to enter exclusive negotiations. At that time (during the due diligence), you'll find all the details and secrets about your business. If you can not see myself doing this kind of obligation to the buyer, but there is no need to go further - to cut them loose now

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Balance Buyer's information needs with your need for confidentiality

Sometimes you will get requests for information from a very good buying opportunity that you simply can not fulfill. For example, after receiving the Sale Memorandum, the buyer may request to see a list of your customers or suppliers.

must determine why the customer wants it to be very specific information. Whether he wanted to steal your customers from you? Or maybe (and probably) the buyer wants to see if overly dependent on one client. If 80% of its revenue comes from only one or two clients who has a legitimate red flag to any customer concerns.

However, their chances should not be the complete list of your customers, with contact details to find this out. Instead, you can prepare a report that shows what percentage of your income comes from each customer (or top 10 or 20 if it's more appropriate ).

So, when a customer makes a request for the entire category of information, not a smooth refuse. Instead, try to understand the customer's specific needs and concerns, and then give just enough information to satisfy this need.
In addition to the names and contact information of your customers and suppliers, information that should be off limits until the buyer signs a letter of intent should include all proprietary information relating to production processes, blueprints, recipes, product diagrams.

Note: only one of your prospects will end up buying your business. However, all the other prospects and will continue to own all the information you give them after they left school.

Well, good question to ask yourself when deciding whether or not to provide certain information to a perspective:

If the person does not buy my work, you can use this information to harm my company's value or success of the new owner? If a customer absolutely insists that you give some of the information they provide uncomfortable, you have three options:

1) You can smoothly say "no" and risk losing him as a prospect.
2) You can give accurate information as requested
3) You can prepare a report that provides just the information you are comfortable revealing and I hope that will satisfy customer needs.

Exactly how to handle this situation will depend on the quality of prospect that makes the request. All you need to rank your prospects based on their qualifications and desirability - which looks you want to take your business? You May choose to make that prospect much more information than the buyer at the bottom of the list.

But whatever you choose, make sure the customer understands you are not trying to hide anything. There is certain information that are uncomfortable releasing now, but when the buyer has submitted a letter of intent that will have full access to your business.