Confidentiality throughout a sale process is crucial. In Deal Note® 134, we provided best practices regarding “who” should be aware of the sale process and “when”. It’s important to release information about the sale process in a controlled and thoughtful manner, as opposed to an unintended premature leak. Such leaks usually lead to decreased productivity, morale, and focus on the sale process. In this Deal Note®, we’ll cover two best practices for communications and public interactions throughout a sale process to prevent leaks.
As soon as you start thinking about selling your business, you should assign a codename to the sale process. This codename should be used in emails, texts, calls, and public interactions. You never know who can hear you at a trade show, through an office wall, or at the dinner table next to you. Or who notices an email subject line, printout on your desk, or on your screen during travel.
In addition to codenames, try to limit the number of public discussions about the overall sale process – keep those sensitive topics for the conference room. If in public, we recommend making the interactions as private as possible: book a private table for dinner rather than sitting at the bar, be wary of who is in listening distance when travelling to and from the interaction, and be sure not to have screens with sensitive information visible to members not in the interaction.
Over the past 24 years of advising A&D business owners throughout the sale process, we’ve seen many ways to keep the sale process confidential. Using codenames and being diligent about in-person interactions are just two examples to minimize the likelihood of a premature leak.
Have a great day,
Ryan Kirby
Junior Partner
