Company owners often make errors during transactions involving their businesses. A very common, and serious, one is to fail to maintain the confidentiality of a sale. Breaching confidentiality during a sale process can kill the potential deal, jeopardizing the value of the business.

It is vital that the sale of your business remains confidential to only those that have to make decisions regarding the sale. News of a prospective sale can create negative repercussions from the company's customers, employees, and suppliers.

Realistically, the rumors of a sale are often much worse for a company to address than coping with a concluded sale.

Customers become less likely to conduct business with companies that they know are for sale because of the uncertainty of new ownership. Will they like the buyer as much as they liked the seller? Will the company be as happy with the product or service? Will the business change its product mix?

Employees too will fear the worst and assume a sale means a loss of jobs. In actuality, most new owners want to retain employees as they are often a very valuable asset to the continued success of the business. Employees that learn of a sale may terminate their employment, removing key assets for the buyer.

Vendors additionally may be wary of a sale given the uncertainty surrounding the identity of a buyer. If news of a sale reaches vendors, they may be reluctant to provide additional goods or services, fearing potential economic or similar problems.

At a time when all aspects of your business will be scrutinized by potential buyers, you will want all your key players on your side. Maintaining secrecy through the sale process is the key.

How can the seller of a business make sure the transaction is confidential?

The first step is to retain an experienced M&A advisor. Merger professionals are highly concerned with maintaining confidentiality. Confidentiality is crucial to the success of a transaction. Merger professionals can market your company anonymously; providing key information about your company without making it obvious that it is your specific company on the market. Additionally, they meet and screen potential buyers to ensure these buyers are truly qualified and interested, before specific information about your company starts to be revealed. Finally, professional advisors can ensure that meetings and other communications are conducted very privately and discreetly during all phases of the business sale, so that only key people are aware of the potential transaction.

Although business owners can try to maintain high levels of confidentiality without outside assistance, it is difficult to do so. Even if the owner understands the actions necessary to maximize confidentiality, owners can breach confidentiality simply by making a phone call or sending an e-mail. For this reason, retaining an experienced merger advisor will payoff in the sale of your business.