Scheduled Close for Dec - When Should Seller and I Announce to Employees?

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December 03, 2021

by a searcher from Northwestern University - Kellogg School of Management in Detroit, MI, USA

My partner and I are on track for a 12/17 close on a Texas healthcare deal, but I have hesitations about announcing to employees before the Christmas and New Year's holidays.

As an employee, no matter what my new buyer would say, I'd likely feel mixed feelings about such an announcement, even though employees just got record year-end bonuses. Employees could also feel such an announcement was mistimed and a clumsy choice by the seller and buyer.

As a buyer, I don't want to delay the announcement as I want to begin the transition from my seller without delay, but I could reasonably sit from the back until 1/1 and handle all the immediate post-closing items and get my financials together.

How would you navigate the situation?

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Reply by a searcher
from Indiana University South Bend in Granger, IN, USA
Communicate ASAP and calm all of their fears. the aim is to return to normalcy. No pay or benefit reductions, no staff reductions. Let them know why you are excited to buy and how the employees are a big part of that. Trust is built over time and lying by omission is a poor way to start, IMO.
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Reply by a searcher
from Northern Illinois University in Chicago, IL, USA
once the deal is done. Senior leaders in the company before closing to help with communication and employee discussions after close
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