In since cases, you will want to keep the sale of your business quiet. It may not be beneficial for the public to know about the sale until it is complete.
In such situations, you may want to institute a non-disclosure agreement. An NDA can help to keep things under wraps until you and the new business owner want everyone to know.
Reasons
Some of the reasons why you may consider an NDA for your business sale include the negative responses that you might get. You could have issues with creditors or even customers, which could hurt the new owner and ultimately the sale. It could weaken your position, allowing the buyer to back out or try to lower the sales price. Another issue could be with employees. They may fear for their jobs and try to be proactive by quitting and finding other employment.
Protection
Using an NDA can allow you to keep the names of everyone involved secret. It can keep the whole process quiet. Once the sale is final, the NDA can dissolve, and the new owner can move forward. It will show interested parties that there are no concerns after the sale, which can allow the new owner to start out on the right foot.
It is important to keep everyone who knows about the sale under the NDA. Any leaks could make the whole process pointless. If you are telling employees prior to the sale, then you may need to include them.
Keep in mind an NDA can only do so much. You may also need to take additional steps, such as holding meetings in private at off-site places.
