Should I tell my staff I am selling my facilities management company?

The rumour mill can be a powerful force in any business, especially when significant changes are on the horizon. If you are an owner of a facilities management company considering a sale, one of the most pressing and sensitive questions you will face is this: should I tell my staff I am selling my facilities management business?

It is a complex decision, and one that demands careful consideration of various factors, including your company culture, the stage of the sale process, and the potential impact on your operations. There is no single right answer, but understanding the perspectives can help you make an informed choice.

The Case for Early Disclosure

Some business owners feel a strong moral obligation to be transparent with their team. Your employees, particularly long-serving or key personnel, have invested their time and loyalty into your organisation. Telling them early might:

• Build Trust and Loyalty: Open communication can foster a sense of trust, potentially strengthening loyalty during an uncertain period. This can be crucial for retaining vital staff who maintain critical client relationships and service level agreements.
• Prepare for Transition: Early disclosure allows key employees to mentally prepare for a change in ownership. They can begin to document processes, transfer knowledge, and even contribute positively to the sale process by showcasing the company's strengths to prospective buyers.
• Mitigate Rumours: In the absence of official information, speculation can run wild. Proactive communication, even if general, can prevent damaging rumours from circulating and impacting morale and productivity.

The Risks of Early Disclosure

Conversely, there are significant risks associated with revealing your intentions too soon. These risks are often why most advisors recommend caution when you plan to tell staff selling facilities management business:

• Employee Anxiety and Departures: News of a potential sale can create immediate anxiety amongst staff. They might worry about job security, changes to their roles, or cultural shifts. This uncertainty can lead key employees to seek alternative employment, potentially before the sale is even complete. Losing core talent, especially those responsible for client retention or specialist technical services, can significantly devalue your business.
• Impact on Operations: A distracted workforce, worried about their future, may see a decline in productivity and focus. This could affect service delivery, client satisfaction, and ultimately, the financial performance of your business during a critical period.
• Confidentiality Breaches: Maintaining strict confidentiality throughout the sale process is paramount. Premature disclosure increases the risk of information leaking to competitors, clients, or the wider market, which could jeopardise negotiations or even deter potential buyers.
• Uncertainty of Sale: Business sales are complex and can fall through for numerous reasons, even at advanced stages. If you tell your staff you are selling your facilities management business and the sale does not proceed, you are left with a demotivated and anxious workforce, and a significant rebuild of trust.

When and How to Tell Your Staff

Given these considerations, the consensus among business sale experts is usually to delay broad disclosure until a firm offer has been accepted, due diligence is well underway, or even closer to completion. At this stage, the likelihood of the sale proceeding is much higher, and you can communicate with greater certainty.

When you do decide to tell staff selling facilities management business, consider a staged approach:

1. Key Management First: Inform your senior leadership team or key managers first. They will need to be prepared to support the transition and answer questions from their teams. Their understanding and buy-in are vital.
2. Clear and Positive Messaging: When announcing the sale, focus on the positive aspects, such as opportunities for growth, enhanced resources, and the stability the new ownership brings. Emphasise continuity, especially regarding client relationships and operational excellence.
3. Address Concerns: Be prepared to answer questions about job security, roles, and benefits honestly and transparently, within the bounds of confidentiality.
4. Timing is Everything: Coordinate the announcement carefully with the buyer. Often, a joint announcement can present a united front and reassure employees.

The stability of your workforce is a significant asset in the facilities management sector. Maintaining your team ensures the smooth delivery of services, upholding your critical service level agreements and preserving client relationships, which are often the true value drivers of your business. Research by the Institute of Mergers, Acquisitions and Alliances (IMAA) consistently highlights that employee retention and effective communication are leading factors in the success or failure of post-merger integration.

Ultimately, the choice of whether and when to tell staff selling facilities management business requires careful strategic thought, balancing transparency with commercial prudence. Navigating this delicate process effectively can make a substantial difference to the success of your sale and the future of your team.

If you are considering your options, a confidential conversation costs nothing and commits you to nothing. Request your free valuation.