How to Protect Employees During a Business Sale

To protect employees during a business sale:

1. Choose a buyer who values continuity, not just cost-cutting.

2. Communicate openly and early to reduce uncertainty.

3. Retain and reward key staff through the transition.

4. Document roles, processes, and expectations to provide stability.

5. Plan a thoughtful first 100 days that reassure employees and build trust.

The People Behind the Numbers

When owners think about selling, they focus on valuation, multiples, and tax strategy. But if you’ve run a business for decades, you know the real heartbeat isn’t in the P&L — it’s in your people.

Employees are often the ones who carried you through growth, downturns, and late nights. For many sellers, protecting them is as important as securing their own retirement. Yet too often, sales end with layoffs, confusion, and culture loss.

At Sixty74, we believe employees aren’t just “headcount.” They’re part of the seller’s legacy. In this post, we’ll explore how to protect your people during a sale — so you can leave knowing the company and its team are in good hands.

Why Employee Protection Matters

• Continuity: Employees carry institutional knowledge that customers rely on.

• Morale: Smooth transitions keep teams engaged and productive.

• Legacy: Sellers want to be remembered as leaders who looked out for their people.

• Valuation: Buyers pay more for companies with stable, retained teams.

A sale that disregards employees risks not only morale but also deal success. Buyers don’t want mass turnover. Customers don’t want service disruptions.

Step 1: Choose the Right Buyer

The first and most important decision is who you sell to.

• Strategic buyers may look for synergies but risk layoffs in duplicate roles.

• Financial buyers may focus on EBITDA and trim costs, including staff.

• Stewardship buyers — like Sixty74 — prioritize continuity and long-term growth.

Questions to Ask Buyers:

1. What happens to my employees post-sale?

2. Do you plan to retain existing leadership?

3. How do you handle benefits, pay, and advancement?

4. Can I speak with past sellers about how you treated their teams?

See After the Sale: Why Sellers Choose Stewards, Not Just Buyers for more on why this matters.

Step 2: Communicate Early and Honestly

One of the biggest mistakes sellers make is leaving employees in the dark until closing. Rumors spread. Morale drops. Key staff start looking elsewhere.

Best Practices:

• Share the decision with leadership before the wider team.

• Frame the sale as an opportunity for growth, not a threat.

• Be transparent about what you know — and what you don’t.

• Provide a timeline so employees aren’t blindsided.

Tip: Silence breeds fear. Even saying, “I don’t know yet, but I’ll tell you as soon as I do,” builds trust.

Step 3: Retain and Reward Key Staff

Buyers want reassurance that critical employees won’t walk. Sellers want to reward loyalty.

Tools:

• Stay bonuses or retention agreements.

• Clear promotion paths under new ownership.

• Public recognition of long-time employees during the transition.

Step 4: Document Roles and Processes

Employees feel safest when expectations are clear. Documented systems also make transitions smoother.

Action Steps:

• Create job descriptions for all roles.

• Document SOPs for daily operations.

• Build onboarding materials for new hires.

• Centralize information in shared systems.

Step 5: Plan the First 100 Days

Transitions often fail not because of bad intent, but because of poor execution. The first 100 days set the tone.

At Sixty74, our approach is Listen → Learn → Lead:

• Listen (Days 0–30): Meet employees, build trust, avoid sudden changes.

• Learn (Days 31–60): Assess strengths, identify gaps, gather feedback.

• Lead (Days 61–100): Roll out quick wins, communicate vision, implement thoughtful changes.

This approach reassures employees, prevents disruption, and protects culture.

The Emotional Side for Sellers

Many sellers tell us their biggest fear isn’t “What’s my multiple?” — it’s “What will happen to my people?”

That’s natural. You’ve led them through thick and thin. Protecting them through a sale means you can exit with pride, not regret.

The Bottom Line: Legacy Is Because of Your People

Your business isn’t just contracts and equipment. It’s the people who show up every day. Protecting them during a sale is the surest way to protect your legacy.

At Sixty74, employee protection isn’t negotiable. We retain, invest in, and grow the teams that make businesses special.

If you’re ready to sell but want to ensure your employees are looked after, let’s talk!