What to Tell Your Employees About a Merger or Acquisition

Hearing about a change in ownership can be devastating to your employees. Whether a company is being bought or conducting a merger with another business, rumors can spread and as the saying goes, “Loose lips sink ships.”

To help avoid this, always honor the confidentiality clause in the merger and acquisition confidentiality agreement very strictly. If an employees ask you about a rumor regarding the merger or sale of the company do not confirm or deny it, but above all do not lie to them. When an official announcement is made a few months later, the employees might feel betrayed if lied to. The best response is to simply say, “We are exploring some options to take the company to the next level.”