What are the Hazards of Selling a Business?
The key hazard in selling a business is confidentiality. If you are selling a car, your house or a piece of real estate, you generally try to draw a lot of attention to the thing you are selling in hopes of attracting prospective purchasers. However, it can be very dangerous to draw attention to the fact that you are trying to sell your business. When your employees know that your business is for sale, they will start sending out their resumes and leave at the first opportunity. Your suppliers will all want to put you on COD since you may not be around next month. Your banker may want to have a talk with you about the status of your loan. Your competitors will start telling everyone that you are going out of business and most importantly your customers may become anxious about committing their business to someone who is selling theirs. If you are fortunate enough to find a buyer, you will then be expected to make numerous warranties with regards to there being absolutely no problem in
