Trade Secret Disclosure and Selling Your San Diego Business
Information About Your Trade Secrets When Selling a San Diego Business
You stand to profit significantly through a successful business sale, but it is also important to protect yourself at all stages of the transaction. For example, when you are negotiating with potential buyers, it is never a good idea to disclose your trade secrets. Your San Diego business attorney can advise you on what to disclose readily, and what to hide. If you have immediate questions about your Trade Secrets and San Diego Business Sale, call us at (619) 793-4827.
Keeping trade secrets in addition to other information confidential will cause prospects to wonder about your hidden assets. Maintaining your trade secrets will also protect your business if a sale fails. While refusing to answer certain questions posed by potential buyers may seem rude, you can maintain a positive relationship with prospects by deferring to answer until later in the sale process. When it comes to trade secrets and other essential information, only disclose enough to inspire interest, saving plenty of worthwhile data that will only change hands when the sale is complete.
Protecting Trade Secrets: Transferring Business Information to Prospective Buyers
Take extra precautions to protect assets during your business sale by asking your business attorney to assist you in determining whether a buyer is serious, and has the funds and resources required to purchase your business. Once you have established your prospects’ legitimacy, ask them to sign a nondisclosure agreement, which you can draw up with the help of your business lawyer.
This agreement ensures that potential buyers will not disclose trade secrets and other sensitive information they learn about your business during the transaction, should the deal fall through. A nondisclosure agreement also ensures that prospects will return any documents they obtain during negotiations if the sale does not occur. It also guarantees that they will not attempt to steal your clients or employees. Your business lawyer can draw up a thorough document addressing the nuances of your enterprise, and ensuring your protection. Prepare the agreement in advance so when a serious client is ready to meet, you will not have to delay negotiations. It is also a good idea to stamp “Confidential” on any mail or documents you transfer to prospective buyers or their agents.
Gathering Value and Equity
Gathering value and equity is part of the thorough documentation that makes your business so appealing to prospects. In gathering value and equity, you must create a sheet documenting the value of your company. For example, if your business produces merchandise, this sheet should include information on the brands you have developed, as well as a unique selling proposition, which you use to market your products or services. Your unique selling proposition sets you apart from competition.
It is essential that potential buyers learn about your unique selling proposition, as this may provide motivation for a high bid on your business sale.
In gathering value and equity, document the way your business utilizes technology, including any state-of the-art technology you rely on, and an inventory of hardware and software used in daily procedures. Your San Diego wealth management firm can help you leverage this information to attract buyers and raise bids.