When do you tell employees the business is on the market?
Short answer? Not straight away.
Telling your team too early can create chaos. Telling them too late can break trust.
Here’s what to consider before you break the news.
1. Timing is Everything
Most owners wait until the deal is well advanced, sometimes even unconditional, before informing staff. Why? Because until things are locked in, too much can change.
Telling them early might feel honest, but it often causes unnecessary panic or gossip, especially if the deal falls through.
Ask yourself:
- Is there a real benefit to telling them now?
- Is the buyer happy with you informing staff, or is there a confidentiality clause in place?
- Are there any risks to operations if the news leaks early?
If you’re unsure, hold off. Buyers often prefer that staff remain unaware until the transition is certain.
2. Plan the Delivery
This isn’t a lunchroom chat. Think through:
- Who needs to know first? (Key managers often appreciate early heads-up.)
- What will you say and how will you say it?
- Will the buyer want to be part of the announcement?
The best conversations are clear, calm, and future-focused. Staff don’t want vague hints; they want to know what it means for them. Be honest about what you know, and don’t speculate on what you don’t.
3. Protect the Deal (and Your People)
A confidentiality agreement with the buyer helps ensure your team doesn’t hear it through the grapevine. That protects both your staff and the integrity of the deal.
Handled right, this conversation builds trust. Handled poorly, it can trigger walkouts, destroy morale, or even kill the sale.
Need a hand getting this right?
We’ve guided hundreds of business owners through this moment. If you’re unsure when or how to tell your team, let’s chat. One conversation now could save you a lot of regret later.