Deciding when to tell employees about an impending transaction is tricky. Your timing is critical.
Announcing too early can impact productivity and morale as uncertainty about future roles sets in. You risk losing key talent and facing performance disruptions precisely when your performance will be under a microscope. Moreover, the more employees know about the transaction, the harder it is to maintain confidentiality, which is paramount, especially when public companies are involved.
Consider involving only the essential leaders initially and gradually expanding the circle as deal conviction strengthens. Your acquirer will likely want to interview employees during due diligence—a fair ask—but ensure your deal is nearly imminent and a non-solicitation agreement with the buyer is in place first.