In family-owned businesses, decision-making can often happen quickly and informally. The owner might make a call on a significant investment in the time it takes to walk from the front office to the production floor. A key promotion may be decided on over lunch. Important issues are discussed not only in conference rooms but at […]
For many business owners, deciding to sell their company is a complex, personal choice. But one moment tends to stand out as the most emotionally charged: telling their employees.
These are the people who helped build your business. The team that trusted your leadership, rallied through challenges, and showed up day after day to push the company forward. As a business owner, you likely feel a deep sense of responsibility to them—not just for their livelihoods, but for their future.
So when it comes time to share the news of a sale, the stakes feel high. What should you say? When should you say it? How can you preserve morale, protect your culture, and show your team the respect they deserve?
At Western, we’ve guided hundreds of families through this process, and this is one of the most common issues we help address. Below are some principles we encourage owners to consider when planning this critical conversation.
Recognize What This Moment Represents
Selling a business is more than a financial transaction. For your employees, it represents change and uncertainty. No matter how positive the outcome may ultimately be, initial reactions can include fear, confusion, or even betrayal. That’s why the way you deliver the message matters so much.
This is a human moment, not just a corporate one. Treat it with the gravity and care it deserves.
Don’t Let the News Get Ahead of You
One of the worst outcomes is for employees to learn about the sale through a third party, such as a supplier, a competitor, or a trade publication. Ideally, employees should hear the news directly from you, not as a rumor or after the fact.
That said, timing the announcement can be tricky. Sharing the news too early can create unnecessary turmoil if the transaction falls apart. However, waiting too long risks losing control of the narrative.
One suggestion is to inform employees shortly before or on the day of closing, when the outcome is virtually certain but not yet public.
Craft a Clear, Honest, and Empathetic Message
There’s no single script that works for every business, but your message should hit a few essential points:
- Gratitude: Begin by acknowledging your team’s role in building the company. Make it clear that this moment wouldn’t be possible without their dedication.
- Context: Share why you decided to sell. Was it succession planning? A health issue? A strategic opportunity for the company to grow under new ownership? Providing context helps employees understand the why, which can better prepare them for the future.
- Continuity: If employees are staying on, and they likely are, explain what they can expect in the near term. Will leadership change? Will benefits stay the same? Will there be layoffs? Be honest about what’s known and unknown.
- Confidence: Reassure your team that you were selective in choosing a buyer, and that this is not an exit driven by desperation but by opportunity. If possible, speak to the cultural fit and shared values between your company and the buyer.
Anticipate Their Questions
While the first few minutes of your announcement are crucial, what comes next is equally important – your employees will have questions. Examples include:
- Will I still have a job?
- Will my manager or department change?
- Is the company moving or restructuring?
- What happens to my benefits or retirement plan?
- What does this mean for our customers?
Prepare answers ahead of time. And where you don’t have answers yet, be transparent about that too. It’s better to admit uncertainty than to give false comfort.
Don’t Let Silence Fill the Void
After the announcement, the rumor mill often kicks into high gear. That’s why we advise owners to remain highly visible and communicative in the days and weeks that follow. Walk the halls. Host a Q&A. Send out regular updates. Even a weekly team check-in can go a long way toward anchoring morale and calming nerves.
If you’re staying on during a transition period, your leadership will be critical. If you’re stepping away, consider how you’ll say goodbye and pass the baton. A thoughtful departure built on appreciation and optimism can leave a lasting impact.
Bring the Buyer Into the Conversation
Introducing the buyer to your team (through a video message, town hall, or site visit) can help humanize the transition. Especially if the buyer is a competitor or a private equity firm, employees may be bracing for the worst. Hearing directly from the new owners can help demystify their intentions and ease fears.
We’ve found that the most successful introductions are those where the buyer speaks to continuity, values, and their enthusiasm for the team, rather than just focusing on numbers and synergies.
Protect What Matters Most
A good buyer doesn’t just buy your company; they inherit your people, your culture, and your legacy. Part of your job during the sale process is to protect those things. That means negotiating terms that safeguard your team as best as possible, and ensuring the buyer understands what makes your culture special.
And once the deal is signed, it means delivering the news in a way that reflects the same care and thoughtfulness you’ve shown throughout your career.
Key Takeaways:
- Announce the deal yourself; do not let the news get away from you.
- Be honest about the transaction; do not overcommit to a future you cannot control.
- Make the announcement in person whenever possible.
- Allow sufficient time for this meeting and be prepared to answer questions.
Final Thoughts
Telling your employees you’ve sold the company will likely be one of the most challenging conversations of your professional life. But it can also be one of the most meaningful.
Handled well, it’s a chance to celebrate what you’ve built together. To open the door to new opportunities. And to leave with your head high, knowing you honored the people who helped you get here.
About Western
Western Commerce Group is a family-owned M&A and strategic advisory firm with a 25-year track record of guiding business owners through complex transitions with discretion and care. Our priority is building enduring relationships so that when the time is right, our clients have a trusted advisor who understands their goals and values their company’s legacy. To date, we have helped 150+ clients throughout North America and completed over $10 billion in transactions.