One of the most important purchases or investments in your life is your own business, so when it comes to selling it you’re making a life affecting decision. You’re moving on after a venture with your restaurant, café or bar in sunny Queensland, and it’s time to get the ball rolling on handing it to someone else.
Keeping news of the potential change of ownership confidential prevents a variety of people – customers, staff and suppliers – from worrying about the continuity of the business perhaps hurting its chances for a profitable sale. So, it’s important to consider using a business sale confidentiality, or non-disclosure, agreement with all interested parties to maintain secrecy during negotiations.
Maintaining confidentiality helps to prevent having your best employees look for employment elsewhere. Losing talent, such as your best chef, hurts small businesses whose profits depend on these people. Your employees are your asset, and you will not only want to take some time to consider how you will manage them post sale, but you’ll need to ask yourself whether you ensure the purchaser continues their employment or gives them adequate notice of termination.
News of the impending sale could also trigger negative reactions among creditors, customers, suppliers and employees, and could spark aggressive reactions from competitors that could weaken your position and decrease your company’s value.
Getting the word out that your restaurant, café or bar is up for sale without letting anybody know is, of course, a tricky proposition, so ensure you have a good working partnership with a specialist broker who can manage all your potential buyers.
This will help to maintain all normal business operations without interruptions to those working around you. It can be demoralising and extremely disruptive for wait staff to be picking up the phone and redirecting them to you when they should be making bookings and taking care of supply orders or managing the restaurant, café or bar.
Save the Heartache
When selling your restaurant, café or bar you will want to have a confidentiality agreement that potential buyers can sign before you hand out your financials or other important information. Most people think when they hand out this agreement they are protected, which in most cases they are, but your specialist broker will be diligent with the paperwork regardless.
Because of the sensitive nature of the information you will be providing to buyers, it’s important the agreement is drawn up by a solicitor and accountant.
Select Only the Best
Keeping confidential about your sale ensures getting in touch with the right buyers as there’s no reason to share your business information with more people than necessary. Screening prospective buyers with the help of an industry specialist, such as a broker, allows you to determine their motives, credentials and level of seriousness.
Any trustworthy potential buyer will be happy to share information about their buying capabilities; if the buyer clearly cannot afford to purchase your business, there’s no need to take the next step of sharing more information.
Although balancing questions from buyers and retaining confidentiality can be difficult, proper preparation can aid you in the process of selling your restaurant, café or bar and ensure that your sale goes smoothly.