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Why Business Sales are Confidential

It is important that Florida businesses for sale are kept confidential.  The Seller needs to protect his/her ongoing business interest, but it is also important for the Buyer’s protection.

When Florida businesses are marketed for sale, usually the description of the business provides enough information to spark the Buyer’s interest.  However, the information is usually general enough so that no one can guess the actual business that is for sale.

When a Buyer expresses interest in a particular opportunity, (and has been pre-qualified in terms of his/her financial capability and experience) the Buyer is required to sign a confidentiality agreement (also known as a non-disclosure agreement) prior to the name of the business being released.

The confidentiality agreement states that the Buyer will not disclose to anyone (other than advisors, such as attorneys and accountants) that the particular business they want more information is for sale.

By signing the C/A, the Buyer also agrees that they will not use information that is provided to him/her to compete against the Seller of the business.

The C/A that most Florida business brokers use is a standard BBF confidentiality agreement.  If a buyer alters the agreement in any manner, it usually will not be accepted and information on the business will not be released to the Buyer.

If a buyer is interested in looking at multiple businesses, the Buyer will need to sign a C/A for each particular business.

One of the most important duties of Florida/Orlando business brokers has is to help protect the confidentiality of Florida businesses for sale.

As a buyer, it is extremely important that you respect a Seller’s confidentiality for legal and ethical reasons.

So why is it so important that a business for sale remains confidential?

Customers
There are many great reasons a business is for sale.  Maybe the owner is retiring, has health issues, divorce or is just burned out from operating a particular business for so long.

Unfortunately, many people jump to the wrong conclusion that if a business is for sale that the business must not be doing well.  For this reason, buyers may assume the business is struggling.  People don’t like to patronize a business that they may think is struggling.

Employees

If employees know that a business is for sale they may worry that they could lose their job.  Employees may look for a new job when they are uncertain about their employment.

Vendors/Suppliers

Vendors/suppliers may not extend credit or terms of payment if a business is for sale.  They may worry that the owner might not pay his/her accounts payable.

Competitors

A competitor of a business for sale may spread the word that a business is for sale to help attract more customers to his/her business.

 

So as you pursue different business opportunities as a buyer, please take the care to protect the confidentiality of the sale.  Someday you may want to sell the business you buy and would appreciate the confidentiality in return.

 

James Parker

Business Broker

Boss Group International LLC

 

Jim Parker

James Parker
President/Business Broker
Lic. Real Estate Broker

Dear Fellow Entrepreneur or Aspiring Business Owner:

On behalf of everyone at Boss Group International, I would like to thank you for visiting us. We have provided a wealth of information on our website so you can better understand the process of buying or selling a Florida business.

 

You may want to see what businesses are currently for sale in Florida. We have provided you a direct link to the database of businesses for sale that professional Florida business brokers use to search for their buyers. Please take a look at this incredible database.

 

If you are interested in buying or selling a Florida business, contact us today so we can discuss the possibilities. As professional Florida business brokers, our conversation will remain confidential.

 

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