The BizBuySell Guide to Selling Your Small Business
Obtain the buyer’s confidentiality agreement
if you’re using one, or your attorney has reviewed and approved. Explain
your need for agreement not to disclose confidential information obtained
during upcoming discussions.
If the buyer doesn’t pledge confidentiality, end
discussions at this point.
Once the buyer has agreed to confidentiality
and convinced you of serious intentions and ability to purchase, share but
don’t release your selling memo. Give the buyer time to review it care-
fully without allowing him or her to take it from the meeting – unless
you are very confident of the buyer-seller match up and then only after
numbering the memo and having the buyer initial every page. That way,
if copies of pages end up in the wrong hands you can trace them back
to the copy you gave the buyer.
If the buyer indicates reduced interest at this
point, probe, address and overcome concerns or end discussions at this point.
Invite the buyer to tour your business.
Before the initial meeting ends,
schedule a tour of your business to keep interaction moving along.
only after inspecting and perfecting its physical
condition, and during a time when it is active and impressive. For very
small businesses where the tour may spark staff questions, consider an
after-hours tour or be prepared to introduce the buyer as a colleague, asso-
Describe and point out features of your business and its strengths
Conduct the same kind of tour you’d provide to an
industry or community VIP, showing how a customer experiences your
business before going behind the scenes to provide an overview of how
your business works. Encourage and answer questions and learn more
about the buyer’s abilities and concerns. Share information without
revealing trade secrets, proprietary processes, or any information that
should be kept from anyone but the ultimate buyer of your business.
buyer indicates reduced interest at this point, probe, address and overcome concerns
or end discussions at this point.
Follow the tour with a private meeting to address buyer questions
The buyer likely will ask: Why are you selling? Where are the problems?
What’s the potential? Be ready to address the buyer’s interests discretely
without revealing insider information. Also, don’t negotiate price at this
If the buyer indicates reduced interest, probe, address and overcome concerns
or end discussions at this point.