Maintaining Client Confidentiality
At Uscita, we appreciate that for a lot of our clients, confidentiality is a crucial aspect when considering selling their business. Preserving confidentiality is key.
It can be difficult to keep under wraps but shouting from the roof tops about a business sale may have a negative impact on the sale going ahead. If the business sale was common knowledge, could it have a negative ripple effect across several areas of the business.
Business owners are often concerned, and rightly so, about revealing the prospect of a sale too soon. Often fearful this could impact on; customers, employees, suppliers and competitors.
People looking to buy businesses should also have consideration for this. You will have a long list of questions you need answers to in order to buy. However, you may not get those answers before you put an offer forward.
Imagine the business is Coca-Cola or KFC. You can’t expect them to tell you their secret recipe before you actually buy the business. That will only come after you complete. However, you will be told financial information, and other aspects which are not critical to their ongoing success.
And what if you do buy the business and then discover the seller had already divulged their marketing strategy or secret recipe to a competing bidder who is now your number one competition. Would you be happy? I suspect not as it would undermine your potential profitability and growth.
So confidentiality can seem like a dead end in negotiations sometimes, but it is always there to protect the best intentions of both buyer and seller.
If you are in need of advice regarding confidentiality agreements or best practice when it comes to an NDA, then get in touch with us, in strictest confidence of course, to discuss further.
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