Selling a Business and Employees — When and How to Share the News
- Dr Allen Nazeri DDS MBA
- Aug 10
- 4 min read
One of the most challenging questions owners face is: When should I tell my employees I’m selling my business?In my experience advising business owners, especially in healthcare — the answer can’t be guessed or handled casually.
Recently, I helped a multi-location medical group through this exact decision. The founders were selling to a strategic buyer who planned to keep every staff member and invest in new equipment. The challenge? If they told employees too soon, rumors could hurt morale and patient confidence. If they waited too long, trusted physicians and staff might feel blindsided.
Finding the right balance is the key to handling selling a business and employees without losing trust or disrupting operations.
Why Timing Matters in Selling a Business and Employees
In any merger, acquisition, or sale, the timing of selling a business and employees news can directly affect the outcome. Employees are the core of company performance — and in healthcare, they are also the face patients trust.
Telling employees too early can lead to distraction, fear, and staff turnover. Telling them too late risks damaging your credibility as a leader.
In the medical group example, we shared the news just days after the purchase agreement was signed. By then, the deal was nearly certain, but there was still time to engage the staff, answer questions, and ensure their support for the transition.
Factors That Impact Selling a Business and Employees Decisions
Several factors can determine the right timing for discussing selling a business and employees:
Type of Buyer – Strategic buyers often keep staff, while some private equity groups restructure quickly.
Deal Complexity – Large, regulated transactions (like medical groups) may require more confidentiality.
Role Impact – If jobs or benefits will change, give yourself time to prepare a thoughtful rollout.
Confidentiality Clauses – LOIs and purchase agreements often limit when and who you can tell.
In every case, weigh the risk of uncertainty against the need for transparency.
Best Practices for Announcing Selling a Business and Employees
When you finally share the news, here’s how to make the selling a business and employees conversation as smooth as possible:
Align With the Buyer First – Agree on timing, talking points, and answers to likely questions.
Lead With the Why – Focus on opportunities, growth, and resources the buyer brings.
Highlight What Stays the Same – Job security, benefits, and core values.
Explain Improvements – Technology upgrades, expanded services, better resources.
Follow Up – Hold small group or one-on-one meetings to address concerns.
Managing Morale After Selling a Business and Employees Announcement
Your job doesn’t end after making the selling a business and employees announcement. This is when employee reassurance becomes critical.
In the medical group case:
Physicians were reassured their contracts and patient lists were safe.
Staff learned their roles and pay would remain intact.
Regular check-ins ensured no one felt “in the dark.”
Result? Not a single staff member left during the transition — and the buyer paid a premium because of the team’s stability.
Final Takeaway on Selling a Business and Employees
The way you handle selling a business and employees can determine whether your transition is smooth or rocky. Protect confidentiality, respect your team, and communicate with clarity and empathy.
In most cases, the best time to announce is when the deal is highly likely to close — but early enough for your employees to process the change and see how it benefits them. That’s how you preserve your legacy and your people.
Dr. Allen Nazeri, aka "Dr. Allen," boasts over 30 years of global experience as a healthcare entrepreneur. He is the Managing Director at American Healthcare Capital and Managing Partner at PRIME exits. Dr. Allen provides strategic growth consulting to leadership teams of both privately held and publicly listed companies, ensuring their preparedness for successful exits.
As an M&A advisor with over a decade of hands-on experience in deal-making, I’ve seen a lot. Deals stall. Offers get withdrawn. Valuations shift. But one of the most common, and underestimated reasons a sale can fall apart is partnership misalignment on the sell-side. Whether it's co-founders, silent partners, or family members with equity stakes, when there's a disconnect in vision, values, or urgency, deals can unravel quickly.
He holds a Dental Degree from Creighton University and an MBA in M&A and Investment Banking from the University of Bedfordshire. Dr. Allen is the author of "Value Engineering: Strategies to 10X the Value of Your Clinic and Dominate the Market!" and the brand new book "Selling Your Healthcare Company at a Premium". Dr. Allen offers a free valuation to business owners ready for a partial or complete exit strategy. Dr. Allen collaborates with strategic buyers, private equity firms, and institutional investors, taking direct accountability for the annual successful sell-side representation of nearly $750M in enterprise value.
To have a confidential discussion about your company and receive a free valuation, please email Allen@ahcteam.com or Allen@ahcpexits.com
You can now communicate with Dr. Allen's clone https://www.delphi.ai/drallen
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