Who Should I Tell About the Sale and When?
Tell co-founders and investors first, critical employees after LOI signing, broader team close to closing, and customers/partners after the deal is announced. Information will leak—plan for it with prepared talking points.
Communication Timeline
Phase 1: The Inner Circle (Tell Immediately)
Who:
- Co-founders and key executives
- Board members and investors
- Your lawyer and accountant
- Immediate family members
When: As soon as you decide to explore a sale
Why: They're essential for decision-making and deal execution
What to say: Full context, your reasoning, and what you need from them
Phase 2: Critical Employees (After LOI)
Who:
- Key technical leaders
- Top sales performers
- Critical operational staff
- Anyone the buyer specifically wants to retain
When: After signing LOI but before due diligence starts
Why: Buyer needs them engaged, and they might hear rumors anyway
What to say: Why this is good for them and the company, address job security concerns
Phase 3: Broader Team (Close to Closing)
Who: All remaining employees
When: 1-2 weeks before expected closing
Why: Once deal is likely to close, but not so early that it affects performance
What to say: Strategic rationale, benefits for the company, what changes to expect
Phase 4: External Stakeholders (After Closing)
Who:
- Key customers and partners
- Vendors and suppliers
- Industry contacts
- Media (if appropriate)
When: After deal is closed but before public announcement
Why: They should hear from you directly, not through news
Communication Best Practices
Confidentiality Management
Use NDAs with anyone who needs to know
Emphasize the importance of confidentiality
Limit information to what each person needs to know
Have a clear protocol for who can discuss what with whom
Message Consistency
Develop talking points for different audiences:
- Employees: Focus on growth opportunities and job security
- Customers: Emphasize continuity of service and enhanced capabilities
- Partners: Highlight expanded partnership opportunities
- Media: Strategic vision and market positioning
Managing Leaks
Expect leaks: Information will get out despite your best efforts
Prepare responses: Have statements ready for different scenarios
Monitor rumors: Address misinformation quickly
Stay calm: Don't let leaks derail your process or relationships
Special Considerations
Customer Communication
Key customers should hear directly from you
Focus on how the acquisition benefits them
Provide continuity assurances about service and support
Be prepared to answer questions about changes
Employee Retention
Address job security concerns honestly
Highlight growth and advancement opportunities
Consider retention bonuses for critical staff
Be transparent about integration timeline
Investor Relations
Keep investors informed throughout the process
Explain how the deal serves their interests
Address any concerns about valuation or timing
Thank them for their support and partnership