Business Sale: Alarms

Business Sale: Alarms

A business comprises of different stakeholders involved in its continuity. Often, there is need to sell a business for various reasons. The process of business selling affects all of its stakeholders such as customers, employees, and the vendors. The process might be lengthy and tricky, depending on the course, and formalities followed. The information on a possible selling of a business may affect its operations. Moreover, failure to undertake the process with proficiency may result to such as business dissolution. Moreover, if such as suppliers and customers learn of a possible business sale that is against their will, they may opt to defect from the business. Such may cause disruptions in the business and possibly its devaluation. Therefore, there is need to undertake business sale in a way that avoids alarming employees, customers, and vendors.

Proper communication should be performed in advance to all the stakeholders of the business. Information is power, and the can disrupt the business operation or work in favor during the sale. The business owner should ensure that communication is timely to ensure that it works in favor for the sale. Communication helps to prevent the occurrence of any unethical event regarding the business sale. For instance, timely communication helps the shareholders to determine whether they should sell their shares or keep them (Morsing & Schultz, 2006). Customers might also turn to the immediate competitors because their loyalty is to the current business owner. Employees might also decide to leave due to concerns on the new terms and the continuity of the business. The vendors might also opt to sell to other potential buyers that can affect the business operations extensively.

According to Hitt, Harrison and Ireland (2001) explain that business sellers should exercise due diligence in the process. Due diligence helps in ascertaining that the process of business sale would be beneficial to it and the shareholders. Moreover, following a due legal process is also essential in avoiding business alarm during its sale. There are stipulated steps followed during the sale of any business. According to Morsing and Schultz (2006), following due legal process helps to assure the stakeholders that the business owner is not engaging in any irregularities. This assurance does not alarm the stakeholders and minimizes disrupts impacted of any business operations.

It would be prudent to lobby support of different influential stakeholders in case of a business sale. Such stakeholders are such as the shareholders and the government. Gaining support during a business minimizes the chances of alarms during a business sale. Moreover, such would be essential in ensuring that all the needs of the various stakeholders are considered. Involving the shareholders prevents business sale alarms that may result when they feel that their views on the process are not put into consideration (Weiss, 2008).

Often, there are concerns on the possible damages resulting from the business sale. Evaluation of a business by such as performing a scenario analysis and feasibility test is essential in preventing potential damages associated with business sales (Hitt, Harrison & Ireland, 2001). The evaluation of the financial circumstances expected from the business sale helps in ascertaining the financial gains of the business sale. Weiss (2008) explains that a feasibility test should also be recommended before the decision of selling the business is made. Moreover, this process helps to assure the shareholders that the business sale is for the benefit of all the stakeholders.





Hitt, M. A., Harrison, J. S., & Ireland, R. D. (2001). Mergers & acquisitions: A guide to creating value for stakeholders. Oxford University Press.

Morsing, M., & Schultz, M. (2006). Corporate social responsibility communication: stakeholder information, response and involvement strategies.Business Ethics: A European Review15(4), 323-338.

Weiss, J. (2008). Business Ethics: A stakeholder and issues management approach. Cengage Learning.

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