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Selling Your Business?
Once you decide to sell your small business, the next step involves finding someone to buy it.  When advertising a business for sale, the first inclination may be to broadcast the opportunity far and wide.  Some owners even go so far as to put a sign in their window that reads, “This business for sale.”  While you will probably generate quite a bit of interest, it may not be the sort of “buzz” you’d like.

Business Confidentiality
One of the greatest challenges facing a small-business owner is how to advertise a business for sale while maintaining business confidentiality.  On the surface this may not seem like much of a big deal, but consider some of the unintended consequences.  What about your existing relationships with vendors and suppliers?  Many have learned from past experience that business owners who plan to move on may not be as quick to pay their bills, and they have probably been involved in situations where the owner stiffed them entirely.  Then there are your employees.  One of the greatest selling points you can make to a prospective buyer is the fact that he or she is buying a business with a fully trained staff.  Workers get nervous when they discover that the place where they’re employed is on the block, as the new owner(s) may not want to retain them.  A final concern involves your competition.  Competitors can use the knowledge of your impending sale as a wedge against existing clients.  Imagine the following conversation:

“Pssst, Mr. Buyer.  I’m sure you know that ABC Company is for sale, right?  No?  Well, I’m not sure you’re aware, but I hear it’s because they’re having problems.  Hey, you don’t want to get stuck without a steady supply of widgets, so maybe you should switch over to us now and save yourself a lot of headaches.”
If your company relies on a few major accounts for much of its revenue, this sort of whisper campaign can have a devastating effect on your profits—and ultimately your ability to sell the business.

Confidential Business Information
It is wise to keep all aspects of your business confidential until the sale actually goes through.  But how can you get the word out without divulging at least a bit of information?  The blind ad is one popular method.  There are plenty of places to advertise a business for sale.  This would include daily newspapers (both print and online versions), weekly “penny-saver” publications, through your local chamber of commerce, or a listing with a trade organization in your industry.  No matter which you choose—or select them all for maximum exposure—the name, exact location or telephone number of your business should never appear anywhere in the ad.  If you have hired a business broker or Realtor to help guide the sale, they will act as the point of contact.  If you decide to market the business on your own, have a friend or relative step in as the initial contact point.

The Confidentiality Agreement
Once a prospective buyer has been located, he or she will need a considerable amount of information to help them decide whether or not they want to acquire your company.  Have your attorney draw up a confidentiality agreement, which spells out exactly which items cannot be divulged to outside parties and what the consequences will be for breaching that contract.  This document is sometimes called a non-disclosure agreement (NDA), and penalties may include a court injunction to prevent further disclosure, the payment of financial damages, the pressing of criminal charges, or all three.  Another way to mitigate the early release of sensitive data is to parcel it out in small amounts.  Rather than disclose everything at the beginning, hold back the most important details until the buyer shows clear intentions to buy your business.

A Final Word
No matter how careful you are, news will always find a way of leaking out.  Unless you are far enough along in the process to comfortably tell the world that a new buyer is pending, it’s usually best to remain circumspect.  A good sense of humor can really pay off in this situation.  Respond to such inquiries by saying something like, “You know, everyone’s business is for sale at the right price,” or, “I’ll listen to any offer—what’s your bid?” or, “I’ve had all kinds of offers for years; what have you heard this time?”  By using common sense and an offhand approach to curiosity, seekers you will disarm the best of them and keep your intentions confidential.

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