How We Maintain Confidentiality in Commercial Business Sales Elfin Forest
When getting ready for commercial business sales Elfin Forest, the first question you need to ask your business broker is how they plan on maintaining confidentiality. The fewer people know about the sale of your business the better. Maintaining confidentiality is, however, not easy. That is why at So-Cal Business Brokers we take time to inform you of the steps we take. Here are some of the things we do to maintain confidentiality.
Require the signing of an NDA
In every commercial business sales Elfin Forest, a potential buyer has to sign an NDA (Non-Disclosure Agreement). It is only after doing this that they get the offering memorandum or confidential information memorandum. We understand the offering memorandum will lead to a breach in confidentiality and that is why we always start by vetting potential buyers. In addition to that, the information we disclose to potential buyers is disclosed in stages and not all at once. We make sure we get something in return for every information we disclose.
Buyer work history vetting
Our job is not just to sell your business fast and for maximum profit but also to guarantee its continuity. This is why when vetting potential buyers, we always consider their work history. The objective is to determine if they have the specific know-how of running your business. We always ensure a buyer is both financially and professionally qualified before letting them in. if they don’t fit, they cannot move forward to the next stage.
As mentioned earlier, we disclose vital information in stages. The goal is to guarantee there is no breach in confidentiality. Some of the information we disclose to potential buyers include:
- Gross margin
- Customer saturation
- Overview of the facility size
- Major markets served
- High level sales as well as EBITDA for the last 3 years
- Sector concentration
- Types of sales and marketing efforts used
- Size of the staff
Financial ability of a buyer
If the buyer still has interest after reviewing the offering memorandum, the next step is to determine if they have the financial ability to close the transaction. Potential buyers must show evidence of their financial ability to close the transaction. If they will be financing the deal, the should show evidence of appropriate down payment as well as their creditworthiness.
At So-Cal Business Brokers we want to make sure commercial business sales Elfin Forest run as smoothly as possible and that the final results are beneficial for both you and your company. Contact us today to take advantage of our free consultation. We are always happy to hear from you.