Chapter 7
Assuring Confidentiality
IN THIS CHAPTER
Enticing Buyer interest with a teaser
Securing a confidentiality agreement
Avoiding confidentiality breaches (and taking care of any that occur)
Elmer Fudd had the right idea; the wabbits surely would’ve scattered if he’d announced his intention to shoot up the forest. Similarly, broadcasting the details of an ongoing M&A deal can have disastrous effects (especially if you’re the Seller). That’s why confidentiality is so important in mergers and acquisitions. In this chapter, I introduce you to the methods Buyers and Sellers utilize to assure confidentiality.
Tempting Buyers with an Anonymous Teaser
A teaser is an aptly named document: Its intent is to give a Buyer just enough information (the product, the customers, the problem the company solves, and some high-level financials) to make him want to learn more. Another aspect of the teaser is that it’s (usually) anonymous. Most often, a Seller’s M&A advisor (investment banker or business broker, usually) is the person who forwards the teaser to a Buyer.
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