Building your firm was hard. Deciding it was time to retire was likely harder. But telling your staff you are moving on? For small firm owners, that might be the hardest task of all.
In many small firms, the team feels more like a close-knit family than a group of employees. You’ve likely worked side by side for years, so it’s no surprise that the thought of breaking the news stirs up some nerves.
It’s a delicate topic, and for good reasons. Share the news too early, and it could spark panic, rumors, or even resignations. Wait too long, and trust can erode.
How you handle this conversation can make the difference between a smooth handoff and a stressful mess. This article walks you through what to consider, when to speak up, and how to protect the value of your firm while honoring the people who helped build it.
The Case for Confidentiality
There are real risks to sharing the news too soon. If your staff hears you’re planning to step away, they may worry about their job security. Worse, they may want to leave before a buyer is in place. Plus, uncertainty breeds fear, and when your team feels unsettled, it can quietly affect the client experience. Additionally, keeping things confidential helps prevent word from reaching your competitors.
When the stakes are this high, it helps to hire someone who has helped many firms in this position to ensure that buyer outreach, vetting, and communications stay discreet. This allows you to focus on your practice while the process unfolds quietly behind the scenes.
It’s not about secrecy; it’s about discretion. It’s about protecting what you’ve built until the path forward is secure. In most cases, that means keeping things confidential until the sale is signed, sealed, and ready to be delivered. That said, in small firms, that may not always be possible.
When Early Disclosure Makes Sense
While most lawyers wait until after the sale closes to inform their staff, there are times when looping in one or two key people early is necessary. This is especially true in small firms where a lawyer or staff person may be central to how everything runs.
If you rely on someone in your firm to help with due diligence or buyer communication, it’s reasonable to share necessary information, especially since it’s hard to keep someone in that role completely in the dark. Just be sure they sign a non-disclosure agreement and fully understand what’s at stake. Even a well-meaning slip can spark staff anxiety, raise client concerns, or jeopardize the deal entirely.
How To Handle Onsite Buyer Visits
Buyer visits are another sensitive matter. It’s common for a prospective buyer to want to see the office or meet you in person before closing. If your staff isn’t in the loop yet, try to schedule those meetings during off hours. If someone asks who the visitor is, a simple explanation can usually satisfy curiosity without opening the door too wide.
That said, don’t assume your staff won’t pick up on something. Lawyers tend to hire smart people who are often detail-oriented, intuitive, and skilled at asking the kinds of questions that lead to honest answers. If your staff senses something’s up, one of them may ask directly.
When that moment comes, it’s best to be prepared. Practice a response ahead of time so you can stay calm and minimize the risk of them having an emotional reaction. A steady, non-committal answer like this can go a long way:
“I’m not going to practice forever and have decided to explore the various options. I have no idea about the timing and I’m in no rush. Just exploratory at this point.”
What to Say (and How to Say It)
Once the deal is signed, it’s time to tell your entire team. This conversation sets the tone for everything that follows. Your staff has likely been with you through years of trust, long hours, and shared wins. Now, they need clarity, reassurance, and respect.
Gather everyone together and start by addressing what matters most to them: job security. Let them know that the buyer hopes to keep the current team. In most cases, buyers want the existing team to stay intact. In fact, if the selling firm has good staff, it makes the firm more attractive to buyers. If that’s true in your situation, say so.
If you’re planning to stay on during the transition as a consultant, in an of counsel role, or simply for continuity, share that, too. This signals that you’re not walking out the door tomorrow and that they won’t be left navigating change alone.
If your compensation includes an earnout, it’s worth letting your staff know you’ll still have a financial stake in the firm’s success. This shows that you’re not just handing off the reins; you're staying invested in the outcome.
How To Keep Your Staff Grounded and Confident
Be ready to explain why you’re selling. It may seem obvious, but saying it out loud helps employees process the transition. Whether it’s about retirement, health, or making space for the next chapter, an extra explanation goes a long way.
Let them know you’ll still be around for a while, and that day-to-day operations won’t change overnight. Reassuring your team that things will remain familiar in the short term can help reduce uncertainty and give everyone time to adjust.
Just as important: make space for their questions. After you share the news, give your team the time and opportunity to express their concerns. Listen openly, and not defensively. This isn’t just about delivering information, it’s about preserving trust. When people feel heard, they’re far more likely to stay grounded, cooperative, and committed through the transition.
To help keep everyone anchored, consider offering a transition bonus to encourage staff to stay on during the handoff. These bonuses are often discussed between buyer and seller, and at times, the expense of providing them can be shared between both parties.
Calling it a transition bonus rather than a retention bonus emphasizes continuity and cooperation, not just loyalty. It shows appreciation and creates incentives for stability, not just for the new owner’s benefit, but to ensure a smooth exit for you and a steady path forward for your team.
What Your Staff Really Needs
In the end, your staff doesn’t need a perfect plan or a dramatic speech; they need honesty and assurance that their future is being considered. If you can offer that, your transition stands a much better chance of going smoothly.
Most importantly, help your staff see the sale not as a threat, but as a new chapter. A new owner may bring fresh energy, better tech, or new marketing strategies. For loyal staff, that can mean new roles, growth opportunities, and a long-term place in the firm’s future. Handled well, this gives your staff a reason to feel hopeful about what’s ahead.
What Small Firms Have In Common
Every firm is different, but the goal is the same: a smooth transition for everyone involved.
Selling your firm is a leadership moment. The more thoughtfully you manage the transition, the better chance you have of preserving relationships, protecting your reputation, and supporting your team’s future. There’s no one-size-fits-all approach. What matters most is that your staff feels informed, valued, and considered along the way.
But the timing of that conversation matters. One misstep, whether it’s an early announcement or a rumor that spreads too fast, can shake team morale and jeopardize the deal. That’s why working with a professional isn’t just helpful; it’s crucial.
This is where succession planning makes all the difference. With the right plan in place, you can proceed with confidence, knowing you’ve covered the details and honored the people who helped build your practice.
If you need help creating that plan, Roy Ginsburg has guided hundreds of lawyers through this exact process. Schedule a free consultation to get started.
