Why is it required to keep your identity confidential while selling your business?

Category: QuestionsWhy is it required to keep your identity confidential while selling your business?
2 Answers
Anonymous answered 4 years ago

Following points tell you why to keep your identity confidential while selling the business:
Customers begin to wonder
Customers begin to assume that your business has problems that could threaten their supply chain.
Competitor will hurt you
When the competitors find out that your business is for sale, they will leverage and warn your customers that you will be closing down soon.
Vendors and Creditors may tighten terms
Vendors and creditors may tighten the credit payment terms for your business that may affect working capital needs.
Employees Get Nervous
After hearing news of business selling, employees can get nervous and start looking for new career opportunities. Your business may lose key people before the business exit.

bhavin answered 4 years ago

Keeping it confidential till a point helps the team/company not to loose the focus (business growth) while this is being explored.