Advice: Preparing to sell means preparing to tell

In association with:

Through the course of the life of your business there will be much of value generated in it and it’s of vital importance to keep confidential; whether that be from your competitors, suppliers or clients.

When it comes to selling your business, there will be an inevitable negotiation phase followed by or running alongside a due diligence process, something which can be quite intensive, dependent on the nature or value of the business.

We would advise those business owners who are looking to sell to ‘prepare to sell’ as a first step.

If done properly, such contracts will have the effect of protecting what is valuable in the business and offer comfort and assurances to any potential buyer. This is a simple but effective exercise in adding or substantiating value in your business.

Putting a formal and comprehensive Heads of Terms agreement in place is the best way to do this but, in the absence of that, a simple non-disclosure agreement should at least act as a deterrent to abuse of the confidential and valuable disclosures and provide you with effective remedies should there be a breach.