Weathering Big Changes: What to Tell Your Staff When Selling Your Small Business

Talking points for a tough conversation about a positive change

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Recently, I sold my business. One of the toughest parts of the transition was announcing that the sale had occurred. How do you tell your staff when big changes are on the way? Change can be scary, even a change as positive as this one. I wanted to prepare them without alarming them, to reassure them in a potentially worrisome time.

Because I hold scrum meetings a few times a week, I simply asked everyone to plan on staying for a few minutes after our regular scrum. I didn’t use a slide or any visual aids. I had a few talking points that I covered in about 15 minutes. If you are in a similar situation, read on to find my talking points.

1. You’ve seen some recent changes

Here, I started out with some issues that I knew the entire team had been aware of. For example, I felt sure that everyone had noticed I’ve been absent more than I’ve been present during the past year. Throughout that time, I tried not to give a poor-me story, and none of the team had heaped any guilt onto me.

But I feel sure the team suspected I had carried some serious responsibilities for a debilitated relative in another state even before this year. My leadership was spotty at best, and they were often left to fend for themselves. We all knew the consequences that created for them.

In reading this, you may feel your situation is very different. But if your business has experienced any changes that negatively impacted the team, you might use this as a way to acknowledge that, and then launch into the next points.

2. You deserve more

Again, this naturally flowed for me and my team, but it might not be appropriate for you and your team.

However, you can probably stick with the idea that there’s something positive on the horizon, and you want to make it happen. Tell your staff that you’re taking a step that will be in their interest.

If you had some circumstances that were positive, that, too, might create an opportunity to say that the team deserves more, and you want to help that to happen.

3. You’ve done a fabulous job

Here, I tried to highlight some of the adversities that the team had overcome, some of seemingly insurmountable projects we had completed on time, and the goals we had achieved. In my case, I mentioned how they had achieved some these accomplishments with little help from me.

If you can, name specific facts surrounding those adversities, projects, and goals. I felt I should mention the cooperation and collaboration — the process — that made such achievements possible. If you can, give callouts to specific teammates. I’m not suggesting that you ramble on, but giving a public acknowledgement where praise is due sets the tone for the remainder of the announcement.

I also reminded them that I consider my team as my “corporate family.” (They’ve heard me say that before, but it felt right to repeat it in this context.) Then, I made my pivot to my next point.

I said that I felt very grateful to be working with such a great group — and that I will continue to be working with them in many years to come so that, together, we can make this a bigger, stronger company. Here, I invited them to “Please share my enthusiasm for what’s ahead, because it’s quite possibly the best thing that has happened to this company in years.”

4. I’ve sold the business

I chose not to lead with this statement. I felt it was more important to start by acknowledging that our recent path had been rocky and giving credit for some remarkable accomplishments even under some less-than-ideal circumstances.

Here’s why I didn’t lead by announcing the sale of the business. I was afraid that they wouldn’t hear a word I said after that. I wanted to set a positive tone. I feared they would get stuck in what they might be losing. I wanted to draw their attention to a brighter future.

By the way, I did not tell my staff about the sale until it was a done deal. I had read several articles about that approach, and I felt strongly that the risks of making an early announcement outweighed any possible benefits for both the buyer and the seller.

5. Let me tell you a little about the new owners

This is tricky. I didn’t want to steal the new owners’ thunder. But I knew that “my” team — although they technically were no longer my team — would want my perspective.

I told them how the buyers and I had met through a mutual friend, and that, although the discussions had not started out with an offer to buy the business, that possibility did eventually present itself. I gave a few brief facts about the new owners and their backgrounds, and said the new owners would introduce themselves the following day. However, I gave a few explanations for why I felt the new owners would be a good fit for the business.

6. Give a quick reassurance

Any time there is a change of this magnitude, there’s always one big question on each person’s mind: Will I lose my job? Tell your staff the truth, but offer reassurance if you can.

I said, “Just to reassure you, you will not lose your job the minute the new owners take over.”

Here, I said that I had introduced this question to the prospective buyers long in advance of any papers being signed. I quoted the new buyers as saying, “Any new buyer who comes in and immediately gets rid of the current staff is nuts. That’s just not a good way to start off.”

Then I paused, and said, “Let me repeat what I just said: You’re not going to lose your job the minute the new owners take over.” Then, I promised to say more about that later.

I knew that if I didn’t mention job security right away, they wouldn’t hear the rest of what I had planned to say.

7. How things will shake out for you

I didn’t give them any long-term reassurances of whether the new owners would keep everyone on the team forever. That’s not my place. Instead, I made a few related points.

First, I made it clear that no one should be slacking off. I had told the new owners that my team was exceptional in their work ethic, their ability to collaborate and cooperate as a team, and their willingness to go the extra mile when needed. I had said that the “newest” person on the team had been on the team for six years.

I asked the team to give their best to the new owners in the same way they have given their best to me. I acknowledged that the new leadership would be different from me and might set different standards — perhaps higher for some issues and lower for others, I don’t know — but they should live up to those standards for the new owners, same as they did for me. That set me up to mention some commonalities between me and the new leaders.

I was quick to say that we shared a value of running a family-oriented business. I reassured the team that the new owners had small children. I told them I felt sure that no one would get fired for rushing home to help a kid who just got a concussion on the football field. I asked that they welcome leaders who are exceedingly committed to their own families and will likely be compassionate towards them and their families.

I wrapped this up with one sentence: “No matter what happens, be confident that they have values similar to yours and mine, and I can assure you that they will do right by you.” Tell your staff about the things you do know, not the things you have no way of knowing.

Next, I made three points about change:

New leadership always means change, and however uncomfortable change may feel, it’s necessary for the business to grow.
I will take questions when I’m finished with this announcement, but because I’m no longer envisioning the changes, I won’t have all the answers.
Meanwhile, let me tell you what will change, and what will not change.

8. Here’s what is NOT going to change

You will get your next paycheck at the time when it is regularly issued.
I am not retiring.
I am not going anywhere. I will continue to be actively involved in the business. Just not the day-to-day operations!
The new owners have retained me to do what I love doing: I will be doing the creative stuff. We carved out a detailed set of possible roles and responsibilities for me.
I still have a significant financial stake in this business. So I will be invested in the success of the business.
And to repeat: You’ll still be seeing me on a semi-regular basis. I’m not going anywhere!

9. Here’s what will change

Who you report to will change. You will no longer report to me.
My role will change. I will NOT be in day-to-day operations.
New owners will likely change some of the ways you work. For example, I’m fairly sure they will be asking you to use new software. I’ll let them speak to the specifics of that when they talk to you tomorrow.
New owners may have different expectations of you. Not necessarily better or lesser, but different.
You’ll see a different leadership style. I say this because I’ve often been on staff when a new boss comes on board. The style of the outgoing leader is never exactly like the style of the new leader.

10. NEXT STEPS

Tell your staff the next few steps they’ll need to take. Here’s what I said to my team:

Make yourself available tomorrow at 11:30 Eastern time to meet as a group with the new owners.
Be prepared to meet individually with the new owners sometime this week.
Remember that whatever the new owners do or don’t do, feel reassured that they will do right by you.
What are you questions for me right now?

How you tell your team matters

When you sell your small business, whether you’re staying affiliated like I am or walking away, you want to set it up for continued success. You want to make sure your team is ready to trust and work with the new owners just like they were for you. That’s why how you tell your staff matters. Give them context, reassure them, but most of all, be honest with them. And be ready to listen.

Think back to the last time you got the news of a big change, or delivered it yourself. What was helpful to hear? What wasn’t?