"Today’s discussion will be based on a very important topic as it relates to selling a Middle Market Technology or Internet Company: confidentiality. Whether you own an eCommerce site, an Amazon business, a software application, some combination of these or some other digital asset, you have employees, suppliers and others that you most likely do not want to be made aware of the fact that you’re considering the idea of exiting the business. br br Confidentiality is critical to selling a company, and the best way to ensure confidentiality is maintained is to utilize the services of experts in M&A industry. At ValleyBiggs, our intermediaries pride themselves in taking all steps necessary to ensure that every business we sell is kept strictly confidential so that only those approved and who have a need to know receive confidential information of a client. br br Employees. Often times, the most critical element to keeping the sale of a business secret is related to employee relations. What we have found is that if the employees even have a hint that the company they work for is up for sale, there can be trepidation and fear to their future once a Change of Control occurs. This fear includes whether they will keep their employment, whether their job title or pay will change, and whether a severance package will be included if they are terminated. br Clearly, when an entrepreneur is trying to exit their business, the one thing they cannot have is under-performing employees – which can lead to underperformance in sales. Each scenario is different, but our general recommendation to owners is to keep a potential sale of the company secret from employees until the business transaction is final and funded. This is another critical need for the intermediary – help facilitate the sale and keep potential buyers away from the business (no emails, phone calls or communication with the business, its employees or its vendors should ever occur). Having an intermediary step in and remove the business from the transaction is critical. And if the particular business requires more of a hands-on approach to review during due diligence, the intermediary (not the seller) is in the best position to control the due diligence meetings to ensure confidentiality is maintained. br br Suppliers. Another critical element to confidentiality in the sale of a digital business is the supplier base. Potential buyers should not be made aware of the suppliers of a business until it is clear that the buying entity has the capital necessary to buy the company and a purchase agreement is executed. And even after a contract is executed and the due diligence stage begins, only that information which is absolutely necessary should be released – and only when appropriate. We have found all too often that many people inquire about businesses just so they can see who the suppliers are – or how the business is being run.