Once getting out of a business has been decided on as a valid option, most business owners struggle with knowing where to turn for potential buyers.
This stage will probably run alongside the stages above in working towards a list of people that are likely buyers for the company. This will include names suggested by you as a business owner as well as those driven from desktop research carried out by your advisors. In addition to targeting potential buyers directly it is usual to include intermediaries such as bankers, lawyers and accountants in order to reach a wider audience.
Once a list has been agreed, the one or two page teaser document (which doesn’t include the name of your company) will be issued to seek responses from interested parties.
How do I ensure that my company’s information is kept confidential?
When it comes to selling a business, confidentiality is obviously key to make sure you don’t ‘rock the boat’ amongst staff, business partners and other business owners.
Having received a number of responses to the flyer, a non-disclosure agreement will be issued to each interested party to prevent the sale from becoming public knowledge.
This is effectively a semi-legal document binding the signees to secrecy on the information provided. Upon receipt of a signed copy, the IM will then be issued to each interested party.