Confidentiality

Unlike the sale of assets like real estate, maintaining the confidentiality of a small business sale can be very important to the owner/operator for a number of reasons. It’s not unusual for employees, customers, and even vendors to become very concerned (or worse) if they become aware that the business for sale. Competitors may also use the knowledge of the business being on the market to gain potential unwanted and untimely advantages.

The best way to maintain the confidentiality of a sale is to hire a professional business broker or intermediary that has experience in confidentially marketing businesses and franchises for sale. This includes providing services such as screening, qualifying, and requiring prospective buyers to sign a non-disclosure agreement before releasing any confidential information.

Marketing & Advertising Your Franchise For Sale

Franchise owners today have a number of options when deciding how they would like to market and advertise their franchise business for sale. This includes going the "for sale by owner" route which has advantages and disadvantages. The biggest disadvantage being the potential loss of confidentiality and the possible negative effects it may have on the business and its chances of selling. The biggest advantage of a "for sale by owner" transaction is the owner obviously is not responsible for paying a commission to a Business or franchise Broker.

The most common option franchise owners choose when selling a franchise is to hire a professional business or franchise broker to handle the sale. Most brokers are only paid a commission after the sale is completed, so there is usually no up front expenses. They are also familiar with their local market and buyer demands, and can help maintain confidentiality as well as prepare and price a business for sale so that it has a good chance of attracting a qualified buyer.

As far as advertising, most brokers also employ a number of local and national "business for sale" web sites that can give a listing maximum & confidential exposure to prospective buyers. They also commonly work (or co-broke) with other professional brokers in their area that might have a prospective buyer for your business.

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