Most sellers don't want anyone unauthorized to know their business is for sale. At VR Business Brokers, we strongly agree with this position. Maintaining good working relations with employees, customers, suppliers, vendors, landlords and bankers are important to a company. Any premature indication of a possible change in ownership could disrupt these relationships and possibly, impact the operation of the business. VR strives to maintain confidentiality until it is appropriate to reveal the sale. VR and other professional business intermediaries across the industry use a Non-disclosure Agreement (NDA) to protect a business' confidential information.
Personal Financial Statement
Unless you are paying all cash for a business, the seller and/or a bank will need to see if you are financially and professionally qualified to buy the business. Thus, most sellers require their business intermediaries to screen potential buyers. A personal financial statement, resume and later on, a credit check are also required in addition to the NDA before confidential information can be shared. A letter on letterhead from a buyer's CPA, attorney or financial institution stating the individual or corporation has the financial wherewithal to purchase the company at the advertised terms will normally be accepted in lieu of a financial statement.