When is the exact right time to tell our leadership team that we are actively preparing to sell the company, and how do we deliver the news without triggering panic or a wave of resignations?

Question

Tyler Smith · Accepted Answer

Telling your team too early creates unnecessary anxiety and distracts them from executing your V/TO®. Telling them too late breaks trust. The sweet spot for the broader leadership team is typically when you have a signed Letter of Intent with a highly qualified buyer, but you should prepare the ground long before that conversation happens.

During your exit runway, focus on building an independent organization where the team is incentivized for performance, not just loyalty. When the time comes to deliver the news, frame the transaction as a growth vehicle for the company rather than an exit for you. Explain that a strategic or institutional partner brings the capital and resources necessary to take the business to the next level, creating more opportunity for everyone in the room.

Use your Accountability Chart to reassure them. Show the team that because they already own their seats and manage daily operations through their weekly Level 10 Meeting™, the buyer is acquiring them, not just your equity. They are the value.

Deliver the message in a private, dedicated meeting. Be entirely transparent about what changes and what stays the same. Have stay-bonus agreements or transaction success structures finalized and ready to sign at the exact moment you share the news. This shows your team that their security and upside are integrated into the transaction, turning a moment of potential panic into a clear path forward for their careers.