Keeping It Quiet

Confidentiality is Crucial

In our role as a financial advisor, we are regularly entrusted with our clients’ most sensitive information.  Maintaining client confidentiality is always a priority.  Our reputation depends on it.  The impact of an information breach can manifest in two key areas:

  • Distracting, or undermining the confidence of, customers, employees and other stakeholders
  • Competitors could attempt to use your information for commercial advantage

The period during which breaches of confidentiality are most likely is between the initial contact with acquirers and closing.  Best practice is to invest more time and effort in preparation to ensure that this window of maximum vulnerability is a short as possible.  Pre-screening potential bidders and managing information flow as the process progresses mitigates your risk.  Furthermore, successful completion of the transaction is important because if a process fails, leaks can surface long after the process has terminated.

Valitas applies elaborate procedures and communication protocols to ensure your confidential information and the existence of your sale process are protected.  Some of the principles include:

  • Code names
  • Restricting access to a “need to know basis” and use of a Virtual Data Room
  • Controlled communications through Valitas (both internal and external)
  • Consistent messaging e.g. “raising capital to grow” or “exploring potential strategic partners”
  • Leak mitigation strategies are prepared in advance, with allocation of responsibility among the team, to ensure that a rapid and appropriate response is implemented in the event of a breach

For a more comprehensive discussion of the how we manage client confidentiality, read our Confidentiality and Communication Protocols white paper.

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