Planning to Sell Your Business? - Know All the Stakeholders
In most privately held businesses, the stakeholders are easily identified - a business partner, spouse or family member with an ownership interest, a board of directors, a key employee. And, from a legal or a practical standpoint, their approval is required in order to proceed with the sale of a business. The timing and approach taken for involving the stakeholders may vary, but business owners need to consider the needs, opinions and possible objections of all stakeholders before wading into the process too far.
Before you can say “yes” to a deal, you need to consider who can say “no”
Sellers are often surprised by the number of consents and approvals necessary to close the sale of their business. In many cases, it goes well beyond the approval of key stakeholders and family members. It's not unusual for sales to be cancelled or postponed due to the objections of lenders, landlords, local authorities, or others with whom either party has a material agreement in place.