When selling a business, tell employees honestly, but time it carefully. Many advisors suggest waiting until the deal is signed or close to closing, since early leaks can cause anxiety, resignations, or productivity drops.

Explain why the sale is happening, what changes (or don’t) for their roles, pay, and benefits, and the expected timeline. Address job security directly, even if the answer is uncertain.

Give them a chance to ask questions, and follow up in writing. According to guidance from the U.S. Small Business Administration and SCORE, clear, empathetic communication reduces turnover risk and preserves trust during the transition.