Most agency owners consider eventually selling the business, and some take action on that goal. Once you reach that point, you’ve likely spent months—maybe years—getting everything in order. And now you’re about to close the deal.
You’re ready to be done, but there’s a major step before you celebrate: How will you break the news to your team?
To most of your team members, this news is likely a shock. They weren’t part of the sale negotiations, and they’re now facing an uncertain future—that you’ve sold (or are about to sell) your agency.
The key? Put yourself in their shoes. Get ahead of their fears by answering two crucial questions:
- Why are you selling the agency?
- What does this mean for them?
Be careful. If you don’t handle this well, you risk hurting morale—with consequences for productivity and retention. It could even torpedo the sale, either before the closing or by hurting your earnout payments.
Tell employees why you’re selling
First, your employees need to understand your motivation for selling—why is this happening, and why now? If you founded the agency 20 or 30 years ago, people likely won’t be surprised that you’re selling. The same is true if you’re approaching a typical retirement age.
Barring obvious explanations, employees may assume the worst—that the agency is struggling or that you’ve lost confidence in the business. Neither assumption is good for retention; no one wants to stay on a sinking ship.
Frame the sale in a way that reassures them. For example:
- Are you selling because you want to retire or pursue a new venture? Perhaps the new owner can provide resources and growth opportunities that will benefit everyone.
- Are you ready to move on to your next chapter? Your team might be excited to have a new boss who’s excited about the work.
Be honest, but ideally position the sale as an opportunity—for you and the team. This includes helping them meet the new owner(s), to hear directly about the new plans.
Explain what the sale means for them
Once employees understand why you’re selling, they’ll shift to what really matters to them: What does this mean for me? Or as they say, “What’s in it for me?” (WIIFM)
- Will their job—and compensation—change under the new owner?
- Will they or colleagues get laid off?
- Does the new owner(s) have different expectations?
- How will this impact their day-to-day responsibilities and long-term plans?
- What are the growth opportunities under new leadership?
If you don’t address these questions proactively, employees will start imagining worst-case scenarios. Some may start job-hunting before they even hear the full plan… even if it might be a plan that’s great for their career. Don’t create an inadvertent leadership vacuum.
Give employees a reason to stay
One agency I worked with took a smart approach: they didn’t just break the news and hope for the best. Instead, they gave employees an incentive to stay.
- They told the team early on that they were exploring a sale—but with a key twist. If the deal went through (above a certain amount), each employee would receive a small portion of the proceeds.
- This changed the dynamic. Employees weren’t just passive participants in the transition—they had a stake in making it successful.
Consider whether you can offer a similar incentive. Even a modest financial bonus tied to the sale can turn employees from anxious spectators into motivated partners in the process.
And if you have an executive team, they’re more likely to get phantom stock or other incentives to help you grow the business. They’ll have known about this for months or even years. You want them “rowing in the same direction.”
When you retain the right people after the sale, you’re more likely to collect your full earnout payment(s). Why? A staff exodus can prompt a client exodus, which would likely impact your earnout KPIs.
Tell your managers first
Before a company-wide announcement, meet with your leadership team first. Your managers will be the first people employees turn to with questions, and you need them aligned with the message.
- Your direct reports will be critical to upholding—or potentially undermining—the change. If they don’t know what’s happening—or have their own concerns about the transition—they can’t help you keep everyone else on track.
- If you have multiple layers of management, allow time to tell the lower-level managers so you can address their questions before the public announcement.
If your executives raise serious concerns, pause or slow the process to address things. You don’t want them to torpedo the deal later, especially during the already-stressful due diligence process.
Communicate early, often, and repeatedly
To communicate enough, it’s going to feel like you’re over-communicating. You already know what’s going to happen, but your employees don’t. Expect to repeat yourself—and anticipate that rumors will spread.
For a smooth transition, plan for these six communication steps:
- Align with the buyer on what details you can share with the team. In general—the more the better. But don’t promise things you aren’t confident you can deliver.
- Tell your immediate team of managers first. Make sure they’re prepared to field questions. You might create an FAQ document to help them answer questions from employees, without having to ask you each time something comes up.
- Announce the sale in a company-wide meeting. Be honest, be clear, and focus on what it means for employees. Also, assume people will start recording whatever you say—so be careful about improvising.
- Provide written follow-up materials. An internal FAQ, email summary, or Wiki page will help reinforce key details. As an exercise, imagine people will forget 80% of what you initially share verbally. But coordinate with the buyer on language, since you’re no longer fully in charge; they may not want to have everything in writing.
- Introduce the new owner and address questions jointly. Share high-level answers to the two key questions: why you’re selling and what it means for employees.
- Continue communicating. The transition won’t be over in a day—keep employees informed throughout the process, and keep listening to their questions and concerns. Ideally, everyone can have a 1:1 meeting with their boss to ask questions they might not want to ask in public. Create a feedback loop so you know what managers are hearing.
Agencies usually wait ’til the deal is officially closed before telling the entire team. This makes it a “done deal” rather than a hypothetical. But you’ll need to do what makes sense for your culture.
Expect some challenges
No matter how well you communicate, expect some disruption. Productivity may dip initially, and some employees may leave—that’s normal.
Selling your agency is a huge milestone, but it can feel like an earthquake for your employees. The best thing you can do to promote stability is to communicate honestly and transparently.
Focus on showing your employees why you’re selling and what it means for them. If you can answer their biggest questions, give them a reason to stay, and keep them informed, you’ll set the stage for a smooth transition.
Question: How do you plan to communicate that you’re selling your agency?
