Informing employees that you are selling your company too early during the merger and acquisition process can induce panic, rumors, and sometimes even termination. Which is why it is important to save the spreading of this information for the perfect time: after the sell is finalized.
Of course, it may be necessary for some people to know about the fact that you are considering a merger and acquisition deal during the merger and acquisition process. This may include your accountants. Try to limit the amount of people that know about your merger and acquisition transaction to a minimum during this time, and stress the confidentiality to those you do tell. Only tell those who need to know and whom you trust. Those directly beneath you should be informed of the possibility for changes, and in turn you can get their input on the deal.
When you have finally deemed it time to tell everyone about the merger, do so all at once. Gather everyone together to relay this message, as gossiping or trickle-down information can cause anxiety and resentment in employees. An impersonal email will not ease employees’ worries as much as a face-to-face explanation where they can ask questions as necessary. The prospect of a business merger can be distressing to employees who wonder about the future of their careers.
For any questions or help during the M&A process, contact George & Company.