After both parties have signed a Non-Disclosure Agreement (NDA), you might need to share your financial information to advance in your negotiation process. Tresle provides a safe and secure platform for buyers and sellers to communicate through. Both you and the seller can communicate and share necessary information on Tresle’s communication platform. This can include the following information:
1. Background and Intent
- Introduction and intent: Buyers should start with a brief introduction of themselves, their background, and their motivation behind purchasing the business. This is to help build rapport and a level of trust between you and the seller.
- Professional background and experience: Similar to a resume, you could provide information about your experience in the industry, personal or work projects, and any transferable skills you find would be vital to succeeding with the business.
- Business plan: This is a brief outline of the buyer’s plan and vision for the business upon purchase (ex. Plans for expansion). You might also wish to share any insight you have gained from industry research to help the seller gauge if you have a clear understanding of the business.
2. Financial information
- Creditworthiness: Your creditworthiness will allow the seller to evaluate your ability to finance and pay for the business. You might share your credit report, credit score, debt-to-income ratio, payment history and other relevant information to showcase your ability to make the purchase and secure a loan.
- Proof of sufficient funds: You may also decide to show proof of other funds you may have to demonstrate your financial ability.
3. Due Diligence
- Intent: Convey your intent to conduct thorough due diligence before purchase. This helps to showcase your seriousness about purchasing the business.
4. Confidentiality agreements
- Non-disclosure agreement (NDA): A non-disclosure agreement should be shared and signed by both parties before sharing any vital information such as client lists, financials, and any trade secrets.
5. Reference or background checks
- References: Buyers could provide sellers with a list of references that they can contact to ensure credibility.
- Background check: Background checks can ensure the seller that there are no l potential legal restrictions or factors that might prevent the buyer from continuing operations.
We recommend keeping all communications confidential to Tresle’s platform. Sharing personal contact information and continuing communication on other platforms can pose a risk of data breach, and privacy regulations. Due to inadequate security measures on other communication platforms, the data you share may fall into the wrong hands and might lead to financial or legal consequences.