Websites for Sale - Keep Negotiations Secret when Selling an eBusiness

Imagine this worst-case scenario: During negotiations to sell your website, news leaks out to your key customers and competitors. Your webmaster and customers jump ship -- and then the deal falls through.

The implications of leaked information during the sale of a website can be devastating, both internally and externally. Here are three tips that will help keep negotiations secret:

Insist that all potential buyers sign a nondisclosure agreement before their investigations begin. These documents are not complicated, but they need to be highly restrictive. Clauses should include guarantees that potential buyers (1) will not disclose your financial information to anyone; (2) will not disclose any of your marketing or advertising strategies; (3) will not disclose that sales conversations have occurred.

Control the release of your financial reports. It can be very damaging for private companies to release financial information or financial statements -- especially if negotiations fail to result in a sale. You should only release summaries of financial results, as opposed to audited statements, in the early stages of negotiation.

Limit potential buyers' access to your customer list. Perhaps you can reach an agreement that before closing the deal the buyer will be given an extensive customer list -- but not before the morning of the closing.