Case Study in Confidentiality.
When selling businesses in Orlando it is typically vital
that owners work to make sure their potential business sales are kept
confidential. The easiest way to do this
is to tell only those who need to be told about a potential sale.
This is one case study as to why confidentiality in Central Florida business is important:
Years ago, Crowne Atlantic had just gotten a deal signed for several million dollars for a construction company with a very qualified buyer. The seller unfortunately had not adequately prepared their financial documents. When they found themselves needing to provide updated financial information to the buyer, they had to approach their manager for the information. For some reason the manager was the only person in the company that had access to these financial files. They had had no idea that a potential sale was about to occur and that a purchase contract for the business had already been signed. Against our firm’s advice, the seller told their manager the situation. What followed was no short of epic but it also caused a massive backlash.
Upon hearing that a potential business sale was in the works the company’s manager proceeded to cry. They expressed that they had been a part of a business that was taken over in a mergers and acquisitions deal years before and they along with many of their work friends ended up losing their jobs. While that is not typical for main street business broker deals, this manager deemed this future to be true. They stated that they would tell everyone in the firm what was going on. They said that they would do whatever they could to prevent a sale and try to encourage employees to leave. Here the seller was just looking to sell their business and provide the buyer some financial numbers. Essentially the seller was held hostage by their manager who ultimately through their antics blocked the sale. That manager cost their boss several million dollars.
To prevent antics like this business sellers in the Orlando area need to be very clear about what they are expecting when putting their business on the market. If they suspect employees or customers will be upset about a sale it is often better to not alert them unless absolutely necessary. Typically, when business buyers purchase businesses, they typically do not make any immediate changes with employees, customers or vendors. Everything typically stays the same so there really is no reason for employees or customers to be concerned about a business being sold.
When the Orlando Business Brokers at Crowne Atlantic meet with potential business sellers we always make sure to go over how confidential a sale needs to be for that particular owner and that particular business. We find out where the potential business sale needs to be sensitive. If you or someone you know is looking to sell a business confidentially in the Orlando or Central Florida area call the best business brokers of Orlando at Crowne Atlantic at 407-478-4101 or check out our website at www.crowneatlantic.com.