Beacon Brokerage and Confidentiality
Confidentiality is at the heart of each of Beacon’s Business for Sale listings and at every step of our Toronto business brokers‘ process. It forms the basis of a trusting relationship between owners who have their businesses for sale and prospective buyers who recognize the importance of confidentiality. When large companies and corporations journey through Mergers and Acquisitions, this need is magnified tenfold and extreme measures are in place to ensure business-sensitive information is guarded. However, smaller business owners may feel more vulnerable as they are not used to sharing any information; as opposed to public companies that are obliged to release financial data every Quarter and frequently receive external scrutiny by shareholder groups. Examples of business-sensitive data includes financial performance, client and supplier lists, operating procedures, tax returns; really any aspect that helps a business to operate on a daily basis and grow its position in the market place.
There are many reasons for owners to carry out the sale of their business confidentially. In order to attract a buyer and receive the desired asking price, the business must continue operating competitively. Imagine everyone in your industry knew the business was for sale; suppliers would be wary of selling on credit, customers would be wary of post-sale service, and employee relations would suffer dramatically. Needless to say, without confidentiality, a business publicly for sale on the open market could collapse.
Why a Business Broker?
At Beacon Brokerage, we are committed to confidentially selling your business. We have many procedures in place that will ensure your business can continue to operate as normal while we screen prequalified buyers.
The need for confidentiality becomes clear using an example during the listing and marketing of a business. If a business owner attempts to generate buyer leads without the use of a broker, it will only be a matter of time before competitors become aware of the impending sale.
Having an objective third party in your corner creates a much smoother sale of your business and sets the stage for a successful transition to the new owner. Upon listing with Beacon Brokerage, our team creates a blind business profile that we market to prospective buyers. To see examples of our current listings, click here.
The Right Buyer
When the right buyer-seller match is found and a Letter of Intent has been signed, the need for confidentiality is still prevalent. Often, Letters of Intent contain conditions under which the agreement remains valid. During this period of Due Diligence, both parties must exchange sensitive documentation among themselves and their respective teams consisting of Lawyers and Accountants.
Beacon Brokerage facilitates this intermediary role with the use of a highly secured data management platform called Firmex. Our team will create a unique virtual data room for the transaction where we host all the vital documentation and grant viewing privileges to the parties involved. The software offers state of the art security and a user-friendly interface. Furthermore, each user involved in the transaction has individually assigned access rights ranging from read-only to a watermarked printable copy of the desired documentation based on their role in the transaction. Typical documents that are collected and shared during the Due Diligence period in the business selling process include HST & Source Deduction records, Shareholder agreements and details on bank loans and other financing. Often this information can add up to many different documents, some digital and many more hardcopy, so through Firmex the business broker ensures that the data is categorized and made easily accessible through a consistent folder structure.
All of these measures that we have in place ensure your business selling or business buying experience with Beacon Brokerage will be, both, positive and confidential. For more information, do not hesitate to contact us or visit our website at www.beaconadvisors.com.