Most sellers don’t want anyone unauthorized to know their business is for sale. At VR Business Brokers, we strongly agree with this position. Maintaining good working relations with employees, customers, suppliers, vendors, landlords and bankers are important to a company. Any premature indication of a possible change in ownership could disrupt these relationships and possibly, impact the operation of the business. VR strives to maintain confidentiality until it is appropriate to reveal the sale. VR and other professional business brokers across the industry use a Confidentiality Agreement to protect a business’ confidential information.
Confidential Buyer Profile
Remember, buying a business is a two-way street. The seller wants to be assured that the business he/she has worked hard to build will be sold to someone qualified to own, operate and grow the business. This becomes even more important when seller financing is involved in the transaction. Information contained in the confidential buyer profile is shared with the seller so that he/she can become more familiar with the prospective buyer and their experience, motivations, and qualifications. The seller wants to feel good about whom they are passing a piece of their life on to.
Personal Financial Statement
The seller and/or a bank will need to see if you are financially and professionally qualified to buy the business. Thus, most sellers require their business brokers to screen potential buyers. A personal financial statement, resume and later on, a credit check are also required in addition to the NDA before confidential information can be shared. A letter on letterhead from a buyer’s CPA, attorney or financial institution stating the individual or corporation has the financial wherewithal to purchase the company at the advertised terms will normally be accepted in lieu of a financial statement.