How to tell your staff you're selling your business

Telling staff too early, before there's a real deal, creates months of uncertainty and can spark the departures everyone wants to avoid. Most owners wait until contracts are signed or very close to it, when there's genuine certainty to share.

There's an exception: one or two key people may need to know earlier, for example a manager who will help with due diligence or whose ongoing role matters to the buyer. Plan this with your buyer and advisers, and consider whether a retention arrangement makes sense for anyone critical.

Sequence matters. Typically key managers hear first, privately, so they're prepared to support their teams.

Then the whole team hears together, ideally on the same day, so nobody finds out second-hand.

Key customers and suppliers usually come next, often with the new owner present. Agree the order and the timing with your buyer before anyone is told.

Keep it simple, honest and human. Explain that you've decided to sell, why you've made the decision, who the new owner is and why you chose them.

Then tell people what it means for them as clearly as you can.

A simple structure works well: 'I've made a big decision. After many years, I've sold the business to [name], effective [date].

I chose them because [reason]. Here's what this means for you.

I'll be here until [date] to help with the handover.

Don't promise things you can't guarantee, such as 'nothing will change' or 'everyone's job is safe forever', unless that's genuinely written into the agreement. Broken promises do far more damage than honest uncertainty.

Don't hide behind jargon or make it all about the money. And avoid announcing on a Friday afternoon, which leaves people stewing over the weekend with no one to ask.

Your team will ask: Is my job safe? Will my pay or conditions change?

Who will I report to? Do I keep my leave?

Will the business move? Are you still going to be around?

Prepare clear answers with the buyer beforehand, and admit it when something hasn't been decided yet.

On entitlements, the Fair Work transfer of business rules mean staff who move to the new owner keep most entitlements. Annual leave either carries across or, if the buyer doesn't recognise prior service, is paid out by you.

Knowing this lets you answer confidently.

Staff are naturally more reassured when they can see and hear the person they'll be working for. A short introduction from the new owner, their plans and their respect for the team goes a long way.

Follow up with one-on-one conversations, especially with longer-serving staff, and put the key points in writing so people can reread them later.

Despite your best efforts, rumours sometimes start. If they do, don't deny something that will later prove true.

Something like: 'I'm thinking about the long-term future of the business, and when there's something to share I'll tell you first' is honest without being premature.