Confidentiality is Critical in Business Sales

Given that confidentiality is critical to business sellers, we have provided our Non-Disclosure Agreement or NDA on our website for your review. Sometimes a Non-Disclosure Agreement is referred to as a Confidentiality Agreement.

While professional business brokers and investment bankers make it a strict practice to maintain confidentiality, we insist that all potential buyers sign an attorney drafted NDA because it is critically important that no unauthorized person finds out that a business is for sale until the transaction has closed and the seller is ready to make an announcement.

While there are many reasons to maintain confidentiality, we have listed a few of the major reasons:

  • Competitors may use the information against the business to acquire customers, clients, and employees of the business being sold.
  • Employees may feel threatened and leave or they may ask for more compensation in order to stay.
  • If key employees believe the owner is making a large profit on the sale, they may demand bonuses as a condition of staying.
  • Competitors, clients, and customers may question whether the company will stand behind its contractual obligations.
  • Vendors and contractors may put the business on COD terms causing a cash flow problem.
  • Employee theft may increase because they believe any theft will not be detected.

Also most importantly, all ads that we run are blind ads where the identity of the business is not disclosed. We disclose personal information only after an NDA is signed and the prospective buyer is fully qualified.

Please call Michael Chulak or any of our business brokers with questions.
Office: 818-991-5200
Direct: 818-991-9019