What should I do if word gets out that I am selling my business?

BDC warns that, depending on a listing site’s confidentiality procedures, word could get out to employees, customers or suppliers that you are selling the company. It also notes that a change in ownership can be disruptive for all three. Plan for a leak, and put the first hours into your response before you hunt for the source.

Find out what you have signed

BDC says that to pursue discussions with the seller it is customary to sign a confidentiality agreement and write a letter of intent, and that a letter of intent can create binding obligations on confidentiality and exclusivity where it so provides. Pull every agreement you have signed with brokers, advisers and prospective buyers. Read who is bound, what counts as confidential information and whether the agreement says what happens on a breach. Do not accuse anyone until a lawyer has read the document.

Decide what to say and to whom

BDC suggests working out a transition plan with the buyer that includes a plan to retain employees, customers and suppliers, and how you will communicate with them about the change and what it means for them. If the news is already circulating, consider a short, consistent message from you. Say that you are exploring options, that no decision has been made if that is true, and when you will update them. Never say anything untrue, and do not promise outcomes you do not control.

Tell your buyers and advisers

Let active buyers and your broker know before they hear it elsewhere, and ask whether any of them shared information. Our page on keeping a sale confidential explains how to limit what leaves the room next time.