It means you keep your mouth shut, which is what someone didn’t do. Luckily they blurted it out to somebody who knows to keep quiet.
We’ve been on hold with a client being pursued (to sell) by a PE backed firm. It turns out a big part of the delay was because a supposed joint venture turned into an acquisition of our client’s pursuer.
Our client heard from someone in the acquirer’s company that they’ve sold and to whom. Too bad the deal hadn’t closed yet (it’s in early February). Naturally our client was worried, and the good news is, the acquiring company loves add-on acquisitions and has the capital to do them.
Back to the main point. We know professional buyers like PE firms, family offices, and strategic buyers know to keep quiet although it seems the message didn’t make its way down to the next level.
We don’t completely trust individual buyers (especially searchfunders) on this issue and always reinforce an NDA means don’t disclose anything to anyone except your advisors. We tell buyer clients the same thing.
Excitement reigns over deals as they take a lot of work and deserve celebrating, but only after the deal closes.
“When someone on social media tells you it’s raining, the traditional media’s job is to look out the window.” (Journalist) Helen Lewis
“Democracy means that anyone can grow up to be president, and anyone who doesn’t grow up can be vice president.” Johnny Carson