Confidentiality is integral during your exit journey, but every business owner reaches a point when it's time to share their transition plans. A premature announcement could be detrimental to your overall sale. With such high stakes, timing is key. So, when should you share your transition plans?

Team of Professionals

You can’t embark on your exit journey alone. When you first decide to transition, you need a team of experienced professionals on your side. Legal advisors, accountants, and seasoned M&A advisors will guide you through the entire 1,000 day journey. Your team of professionals will help make your business sale-ready and ensure you get the best deal possible.

Friends and Family

Once you’ve committed to the idea of selling your business, you can begin to let friends and family know. Selling your business doesn’t just impact you– it can affect your partner and your children. For example, you may have pictured selling your business to your children, but they may have other plans. Inversely, your family could oppose a third party sale in favor of keeping your business in the family. Transparent communication prevents poor planning!

Employees

Lastly, you should share your transition plans with your employees. Key employees, such as your executive team, will need to be notified earlier in the process. Other employees should be informed after your transaction is completed. Sharing transition plans with your employees too early can cause them to panic in fear that their employment is unstable. 

Conclusion

There’s no one “right time” to share your transition plans. Instead, exiting is a layered process wherein you share your plans with different groups of people at different stages. Keeping things under wraps can be difficult, but sharing too early can be harmful to the end transaction. If you’re unsure where you are in the transition process, contact Stony Hill Advisors to speak with a seasoned M&A professional today.