We're about 5-6 months out from listing our HVAC company. I've got 14 techs and 4 office staff who have been with me for years. I can't tell them to just hang tight because they'll assume the worst. But I also can't promise jobs after the sale because I don't know what the buyer will do. How do you keep people engaged without lying to them? I'm losing sleep over this.
Team morale
How to keep your team motivated pre-sale
I went through this with a plumbing business in 2019. The thing that helped most was being honest about the timeline. I told them we were exploring a sale, that I didn't have answers to everything and that I'd update them every two weeks even if the update was was 'no news.' People handled it better than I expected.
The every two weeks thing is key. Silence makes people invent stories.
What did you actually say about their jobs though? That's the part I'd be scare of. If I say 'I don't know' they might start looking elsewhere.
I told them I couldn't guarantee anything about the future but I could guarantee that I'd advocate for them in the negotiation. A couple of people did leave. But the ones who stayed were solid, and honestly the ones who left were probably going to leave anyway. I also gave a small retention bonus at closing for anyone still on board.
That retention bonus idea is interesting. Did you tie it to a specific closing date or just a flat flat amount?
Flat amount, paid within 30 days of closing. Kept it simple so nobody had to read a contract to understand it. I did put it in writing though.
I'd be careful about overpromising on the advocate angle. Buyers can be unpredictable. I told my crew I'd push for them but that ultimately I can't control what the new owner does. It felt blunt but at least nobody was blindsided later.
One thing nobody has mentioned yet. Your best people are probably already getting recruiter calls. Have you thought about just sitting down with your top two or three individually? Not a group meeting, just a conversation.
I hadn't thought about doing it one on one. My instinct was to just get everyone in the same room and rip the bandage off. But the more I think about it the more I realize my lead tech would rather have a private conversation than hear it in front of everyone.
Also worth thinking about what happens after the sale. If you're staying on for a transition period, how you act in those first few months will matter as much as what you say now.
Are you staying on at all or walking away at close? That changes the whole conversation.
Leaning toward staying for 6-12 months. Mostly because I don't want to just hand off the keys and vanish. But I haven't fully thought through what that means for how I talk to them now.