We are starting our three year exit runway and want to avoid rumors. When is the right time to tell the leadership team and the broader staff about our transition plans, and how do we frame it?

Question

Tyler Smith · Accepted Answer

Telling your team about an exit is a delicate operation that requires precise timing. If you share your plans too early, you risk triggering panic, leading to key employees leaving because they fear restructuring or cultural shifts. If you tell them too late, you destroy the trust you spent years building, which can derail the transaction at the finish line.

The right approach is to stagger the communication based on the exit runway. During the preparation phase, which is typically two to three years out, you do not need to announce a sale. Instead, frame your exit readiness efforts as operational improvement. Tell your leadership team that the goal is to build a stronger, more efficient company that is easier to run and less dependent on you. This makes their daily jobs better right now and aligns with their personal growth.

Only tell your core leadership team about an actual transaction once you have a signed Letter of Intent and are entering deep due diligence. At this point, their cooperation is necessary to gather data. Secure their commitment with formal retention agreements that reward them for staying through the transition.

For the broader staff, the announcement should happen only after the deal is officially closed. Frame the acquisition as a positive growth opportunity that brings more resources, stability, and career advancement, ensuring a smooth transition for everyone.