When to Tell Your Staff You’re Selling the Business (And How to Do It Right)

This is one of the most common questions I get from business owners - and one of the biggest areas where sellers unintentionally create problems for themselves.

Here’s the truth:

You should not tell your staff you’re selling until the deal is officially closing.

Not because you’re trying to hide anything, but because telling employees too early almost always leads to unnecessary anxiety, rumors, and disruption inside the business.

When staff hears the word “sale,” they immediately start thinking:

  • “Is my job safe?”

  • “Will the new owner cut my hours?”

  • “Do I need to look for something else?”

That kind of uncertainty hurts morale. It hurts performance. And it can hurt the value of the business - all before there’s even a buyer ready to step in.

Over the years, I’ve seen early announcements derail deals that should’ve been smooth. Waiting until closing protects everyone: you, your team, and the buyer.

Here’s how to handle it the right way.

Step 1 - Tell staff at the time of closing

The right moment is after:

  • Due diligence is complete

  • Financing is approved

  • Attorneys have finalized documents

  • Closing is officially scheduled

  • The wire is ready to go

At this point, the deal is done. There’s no guessing, no “maybe,” and no risk of confusion. You can speak with certainty - and that matters more than anything.

This also prevents weeks of stress and speculation, which is the #1 reason I advise owners to wait.

Step 2 - Prepare what you’re going to say

Your announcement should focus on the things employees care about most:

  • Their job is secure

  • Nothing changes immediately

  • You’re staying on to support the transition

  • The buyer is qualified and committed to the business

Before the meeting, I always help my sellers craft the exact message. It doesn’t need to be long or emotional - just calm, clear, and confident.

When the seller is steady, the team stays steady.

Step 3 - Introduce the buyer personally

This is where the anxiety usually fades.

A good buyer will:

  • Shake hands

  • Express appreciation

  • Share their excitement

  • Tell the team that their roles matter

  • Make it clear they’re here to build on what works

That face-to-face moment is powerful. It replaces fear with familiarity, and it gets everyone aligned from day one.

Most employees just want to know the new owner is normal, respectful, and not walking in with a wrecking ball. A simple introduction does exactly that.

Step 4 - Keep the announcement simple and reassuring

Here’s the type of message that works best:

“I’ve found someone who shares my values and vision for the business. I’m staying on through the transition to support you and them. Your job is secure, and nothing changes with your day-to-day work. This is a positive step for the future of the company.”

Short. Direct. Reassuring.

That’s all employees need in that moment - clarity and stability.

Final Thoughts

Selling a business is emotional, and the timing of the staff announcement is a critical part of the process. Telling employees too early almost always creates confusion and fear. Telling them at closing keeps the business stable and the transition smooth.

Handled correctly, the handoff becomes a positive experience - for you, your team, and the new owner.

If you’re thinking about selling and want help preparing your staff announcement (or the entire transition plan), feel free to reach out. I’m happy to guide you through it.

 

Eric I. Mendelsohn- Business Broker