As you prepare to put your house on the market, you get the word out to as many people as possible. The “For Sale” sign is placed in the front yard, you invite people into your home during an open house and you put ads in the newspaper and online. You want everyone to know your house is for sale. However, that’s not the case when selling a business. Place an ad that your business is on the market and people start to wonder. It creates an air of uncertainty that can be detrimental to your bottom line and put the company in jeopardy.
To increase the likelihood of a successful sale of a business at an optimum price, keep it confidential!
Below are four scenarios in what could happen if people find out your business is for sale:
- Employees Leave. They start looking for a new job because they fear layoffs will happen, or they may think they won’t get along with the new owner.
- Customers get nervous. Customers start to have doubts about your stability and wonder if they will get the same service from the new owner. Your loyal customers may decide to find a new supplier, and this could weaken your company value.
- Vendors and Creditors May Tighten Terms. Once creditors learn that your company is on the market, they may tighten their terms.
- Competitors – Once your competitors find out, they could potentially let your customers know, and try to steal them.
A buyer wants a successful operation with few changes until he or she can make those changes. Too many question marks translate into greater risk and lower purchase offers.
Confidentiality is crucial no matter the size of the company or the type of business. To maintain confidentiality, the professional brokers at the Benjamin Ross Group will market the business in a confidential manner, while providing just enough information to attract the buyers you are looking for. By using the unique Benjamin Ross Group screening process, only serious qualified buyers are introduced to your business.
If you are thinking about selling your business, please contact our office to speak with an advisor who can help you start the process.