A client’s attorney reviewed our NDA and told her it may not mean anything because our advisory business probably doesn’t have any assets. I responded with, “If I violate an NDA I’m out of business once word spreads. She wrote back, “I love your response. 😄”
It’s one of those unwritten rules, and I’m sure you have similar in your business. Another unwritten issue is a business’ culture.
There’s been a lot of news about the mess at the FDIC. Its chair, as per the Financial Times, was forced to resign, “after an investigation found a ‘misogynistic’ workplace culture…” In large firms and agencies word gets out, there are few secrets.
In privately held businesses there is no reporting. In buy-sell deals, the culture of the business is (probably) the toughest area for a buyer to get a handle on. The numbers can be dissected, supply chain investigated, technology assessed, etc. But how do you find out how things are day-to-day?
Sure, a buyer can talk to management and key employees, but will they be forthcoming? Online sites are biased because happy employees don’t shout about their happiness.
A tip to owners is, do regular client feedback surveys and sessions and document them.
“If markets were rational, I’d be waiting tables for al living.” Warren Buffett
“Imagination is but another name for super intelligence.” Edgar Rice Burroughs
