Once the letter of intent is signed but before the deal is finalized, how do we draft a communication plan that keeps our key managers focused on their Rocks instead of speculating about their job security?

Question

Tyler Smith · Accepted Answer

Signing a letter of intent is a major milestone, but the deal is not done until the wire clears. If you tell your team too early or with the wrong message, you risk triggering anxiety, key employee exits, and a drop in operational performance that can break the deal in due diligence. Your communication plan must protect the business first.

The correct approach is to keep the circle of knowledge as small as possible for as long as possible. Your key managers should only be notified when their direct involvement in due diligence is absolutely required. When you must bring them into the loop, frame the transaction around opportunity and growth, not your personal exit.

Explain to them that the potential partnership is designed to scale the business and unlock resources that will benefit their careers. Immediately tie their focus back to their quarterly Rocks and their accountability. Reassure them that the best way to secure their future and the future of their teams is to keep hitting their scorecard targets and closing out their current Rocks.

Keep your weekly Level 10 Meeting highly disciplined. Do not let these meetings devolve into speculation sessions. Use the IDS process to identify, discuss, and solve any specific anxieties or resource constraints that arise from the due diligence requests. This keeps your team focused on execution, protects your margins, and shows the buyer a highly professional, unfazed leadership team.