Protect Confidentiality During the Sale Process

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It is imperative to protect seller confidentiality throughout the sales process.  Many businesses can be severely damaged by mere rumors that the business is for sale, should these rumors circulate to employees, customers, suppliers or competitors.  The leaking of sensitive information, such as financials and customer lists can cause further damage. 

During the negotiations and due diligence and processes, buyers will request information about and access to highly sensitive aspects of the business, such as financial records, customer lists and contracts, supplier agreements, employee lists and responsibilities, employment contracts, lists of equipment, sales backlog and pipeline information, etc.  They may demand to interview employees, customer, landlords and suppliers as part of their due diligence process.  

Some of the information and access will need to be provided to make the deal happen, other requests need to be deferred to later stages of the process, and still other requests must be resisted at all costs.  Appropriate legal agreements need to be executed along the way to ensure the seller is protected if the deal does not consummate. (Hawaiian Airlines’ dispute with Mesa Airlines is a textbook example of the risk inherent in this process.)

At VR, we focus exclusively on business sales, so we fully understand the vital importance of protecting your confidentiality. By contrast, real estate brokers are accustomed to openly advertising the sale of their properties for all to see.

We have rigorous systems and procedures in place to protect your confidentiality.

• All public marketing materials are carefully scrutinized to ensure they reveal nothing that could be used to identify your business
• Prospective buyers are screened thoroughly to ascertain their identity, resources, and motivations
• All prospective buyers must complete and sign our Non Disclosure Agreement before receiving identifying or other sensitive information about your business
• We leverage our experience over thousands of deals, to advise what information should and should not be revealed to which buyers at various stages in the process
• Depending on your level of concern about confidentially, we take further optional steps as appropriate:
• Market exclusively "off island" to our mainland and international channels
• Require buyers to provide proof of financial resources to complete the acquisition
• Create numbered copies of all documents and not allow duplication by buyers
• Require your approval of each buyer before providing information
• Require buyers to come to a VR office for a face to face meeting
• Allow viewing of certain documents only in the VR office, and not allow copies
• Allow viewing of certain documents only in the VR office, and not allow copies to be taken out of our offices at all, or until specified conditions are met

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