It’s a proven fact that deals are most easily reached between buyer and seller when both parties are on equal footing. Protecting confidentiality is an important piece of the puzzle. When sensitive information about a limousine business for sale is leaked to the business community, it can affect customer relations, employee morale, and, ultimately, the price a buyer is willing to offer. Fortunately, protecting important business information is easier than many sellers suspect.
Many owners run into difficulty when attempting to sell their own chauffeured transportation business, simply because they aren’t educated about the sales process. When dealing directly with potential buyers, it can be all too easy to leave out a fax document or allow a sensitive e-mail to fall into the wrong hands. In a worst case scenario, competitors can get hold of limo business information and leverage it to steal customers, hurting profits and the potential for finding a good buyer. By having an experienced neutral third-party facilitate the sale, direct contact – and room for error – is greatly reduced.
Part of managing confidentiality involves keeping sensitive information under wraps not only from potential buyers, but from employees and clientele. There is a natural tendency for an owner to try to protect workers, especially in a tight-knit company. But letting staff in on the details of a sale too early in the game can do just the opposite. Spilling information to employees can cause them unnecessary worry about job security and can lead to enough distraction to impact job performance or even loyalty. No matter how trustworthy or well-liked your team members, they may not be able to avoid spreading important details. By preserving confidentiality, you also preserve stability among your work force and customers. Maintaining stability is a crucial factor in improving business valuation.
Confidentiality is a two-way street. When selling a limousine business on your own, you may receive inquiries from a wide variety of buyers, some that are not entirely serious. If those inquiring businesses were to later leak confidential information to the public, including serious buyers, it could have drastic consequences on your ability to sell. An experienced transportation industry broker, however, will require interested parties to sign a confidentiality agreement before proceeding. Brokers will also screen all potential buyers for financial ability, weeding out those companies that may be seeking information for their own gain.