What to tell your staff when you're selling your business
Your team matters, and a sale can feel unsettling for them. Here's a calm way to plan what to say, and when.
Keep it private at first
While you're looking for a buyer, most owners keep the sale quiet. News of a sale can worry staff, customers and suppliers before anything is certain. On Heritage Handshake you can list without showing your business name, so only serious buyers learn more, and only after you choose to share.
The exceptions
- A key manager may need to know earlier, especially if they'll help a buyer understand the business. Ask them to sign a confidentiality agreement (NDA).
- An employee who may want to buy. If someone on your team could be the buyer, see How to sell your business to an employee or manager.
When to tell everyone
Most owners tell the whole team once the deal is signed, or close to closing day. Tell everyone at the same time, in person if you can, so nobody hears it second-hand.
What to say
- The news, plainly. "I've agreed to sell the business to a new owner."
- Why. Retirement, health or family are reasons people understand.
- What it means for them. Share what the buyer has said about jobs, pay and day-to-day work, but only what you know is true.
- Who the new owner is, and when they'll meet the team. Many owners introduce the buyer at the same meeting.
- Thanks. Let them know their work helped build something worth buying.
Keeping good people
Buyers often value a steady team. Some sellers agree to stay for a few weeks or months to help with the handover. Some owners also give a small thank-you bonus to staff who stay through the change. Talk with your accountant about how to do this properly.
Check the legal side
In an asset sale, employees may need to be offered new jobs by the buyer, and length-of-service rules can apply. In a share sale, the company stays the employer. The rules depend on your province, so ask your lawyer before you tell anyone. See Asset sale vs. share sale.
See also: How to prepare your business for sale and Closing day adjustments.
Common questions
When should I tell my employees I'm selling?
Most owners wait until a deal is close, often after the purchase agreement is signed or just before closing. Telling too early can worry people before anything is certain.
What if an employee asks me directly?
Be honest without sharing details you've promised to keep private. You might say you're always planning for the future, and that you'll tell everyone together as soon as there is anything definite to share.
Will my staff keep their jobs?
That depends on the buyer and the type of sale. Ask the buyer early what they plan for the team, and ask your lawyer how employment rules apply in your province.
Sources
Ready when you are
Listing is free and takes about 10 minutes. Your details stay private until you choose to share them.