Pros and Cons of Revealing Your Exit Intentions Early

Revealing Your Exit Intentions Early - Should I? Or Shouldn't I? 

You’ve decided you are going to exit your business. What’s next? 

By now you will have realised, this will involve changing your involvement in the daily operations of the business and then, when the time is right, selling or exiting the business.

Although there are many things to work out and decisions to be made – the questions around communication with your staff soon bubble up.

• Should you or shouldn’t you inform them?
• When is the best time to tell them?
• And, how will you do it?  

What is the right answer? 

You can spend a considerable amount of time and energy weighing up the options and mentally walking through scenarios in order to make a sound decision.  

There are arguments for and against. In reality, the answer for you depends upon your circumstances.

Many of the arguments stem from other people’s experiences and circumstances, which are different to yours. Of course, there will be common aspects and similarities too, that may be helpful references.    

What do we mean by 'early'?

As soon as you make the decision to exit you face the choice of when to inform and engage members of your team and your employees.

Therefore, 'early' refers to the point straight after you make the decision to start preparing for an exit. This means there will be a large amount of uncertainty about how, when and what that means.

Later in the process more certainty will develop about the direction, strategy, steps, and the intended outcome for everyone.

As a side note, you will need to get your communication aligned.  There will be key people who you will need to get on board early, in order to start the preparation process – obviously they will need to know. This article is primarily focused on when to communicate to the wider team and employees about your exit goals. 

Now, with that understanding of early, let’s explore arguments for and against early communication.

Exploring the Pros and Cons of Revealing Your Exit Intentions Early

Benefits of Early Disclosure About Your Business Exit 

One of the attributes and responsibilities of leaders is to bring certainty to the people under their care.

Drawbacks of Disclosing Your Exit Intentions Early

Some arguments have both positive and negative aspects.

For example, employee concerns may lead to the departure of some employees, however, if those employees are not performing as expected, their choice to depart may be a blessing in disguise.   

'Someone's sitting in the shade today because someone planted a tree a long time ago.' 

~Warren Buffet ~

Making an Informed Decision About Revealing Your Exit Intentions Early or Later

Here's a summary of the pros and cons of revealing your exit intentions once you've made the decision to exit.

The decision is complex and requires an understanding of the entire exit journey and consideration of your endpoint. If this is the first time you are exiting a business, understanding the entire journey can go a long way to helping you make an informed decision.

Some of the factors influencing your decision may include:

• Who you believe your likely buyer to be?
• What the size of your business is and how many employees it has?
• How long the preparation phases are in your exit plan so you know how much time is available to address any issues arising from your communication strategy?

Similarly, if you choose to communicate later in the journey or at the point of sale, you should consider carefully whether that strategy will best serve you or not.

While you are the only one who can make the decision about when to inform your staff of your planned exit, there are resources to assist you and you are not alone. 

Our key message is to think through these important decisions well in advance and avoid the costly crunch of leaving it too late or relying on hope – which can't be regarded as a method.    

As Warren Buffett said, ' Someone's sitting in the shade today because someone planted a tree a long time ago.' Your approach to revealing your exit intentions is not just about the immediate effects - it's about setting the stage for a future that continues to thrive, even in your absence.

How will your strategy for unveiling your exit intentions cultivate a legacy of trust and resilience for your business's next chapter?