Telling Customers and Suppliers When You Sell Your Business

Your customers and suppliers are a big part of what a buyer is paying for. How and when they hear about the sale can decide whether they stay. Tell them too early and you risk worry and lost sales; tell them badly and a loyal customer may drift away. This guide covers timing, who should speak, what to say and how to keep things steady.

Why timing matters

Until a deal is signed and closed, it can still fall apart. If customers hear early, some may start looking elsewhere, and competitors may use the news to approach them. Suppliers may tighten credit terms while they wait to see who the new owner is. That is why most sellers keep the sale confidential until close to the end, and why buyers are asked to sign a confidentiality agreement before they see anything sensitive.

A simple order for telling people

1. Your advisers first: your lawyer and accountant. See who does what.
2. Suppliers or customers whose consent is needed: only once a buyer has signed a letter of intent, and only with the buyer's agreement. Some contracts and leases can't move to a new owner without it. Our guide to transferring contracts and licences explains the common cases.
3. Staff: usually shortly before or at closing. See what to tell employees.
4. Key customers: at closing or just after, ideally with the buyer in the room or on the call.
5. Everyone else: a short, friendly message once the sale is done.

Agree the plan with the buyer

Before closing, sit down with the buyer and agree who tells whom, in what order, and with what message. Write it down as a short list of your top customers and suppliers, who will contact each one, and by when. The buyer has a strong interest in keeping these relationships, so most will welcome the help. Some purchase agreements include this as part of the handover.

What customers want to hear

Customers mostly want to know that nothing they rely on will get worse. Keep the message short and cover four things:

• The business has a new owner, and who they are.
• The things they value will carry on: the same team, products, service and prices, as far as that is true.
• Who to contact from now on, with a phone number and email.
• A thank-you for their support over the years.

Only promise what the buyer has agreed to. If prices or hours will change, let the new owner explain that later, in their own words.

Sample wording

Here is a starting point you can adapt:

After [number] years running [business name], I've sold the business to [new owner], who takes over on [date]. The team you know is staying, and you can expect the same service. [New owner] will be in touch soon, and you can reach them at [phone] or [email]. Thank you for your support over the years. It has meant a great deal.

Your biggest customers

If a few customers make up a large share of sales, treat them separately. Call or visit them yourself, introduce the buyer in person, and plan a few joint visits during the handover. Buyers often link part of the price to these accounts staying, through an earn-out or a holdback, so a careful introduction protects your price as well as the relationship.

Suppliers

• Make a list of each supplier, the account name, credit terms and any agreements in place.
• Tell suppliers who need to approve a change, or set up a new account, early enough that orders aren't held up after closing.
• Introduce the buyer to your main contacts so supply and terms carry on smoothly.
• Settle or agree how open invoices are handled at closing. Our guide to closing day adjustments covers this.

Online and public updates

After closing, update your website, Google Business Profile, social media and email signature, or hand the logins to the buyer so they can. A short announcement post can be warm and simple. Keep it positive and avoid sharing the price or other private terms.

If word gets out early

Sometimes news leaks. Don't deny it if it's true. Say calmly that you're planning for the future of the business, that service carries on as usual, and that you'll share more when there's something to share. Then talk to the buyer about whether to bring the announcement forward.

A note on advice

This guide is general information, not legal, tax or financial advice. Every business and sale is different. Please talk to your lawyer about consents, contracts and privacy rules before sharing customer or supplier details with a buyer.