The CEO thought he was being smart. Keep the acquisition talks quiet, avoid unsettling the team, maintain business as usual. Six months later, when the deal fell through, he discovered his head of sales had been job hunting for three months and two key developers had already handed in notice. The buyer’s due diligence had uncovered the talent exodus. Deal dead.
When raising capital, CEOs often think that keeping quiet will protect the business. In reality, silence can be as damaging as overpromising. As Michelle Mullany puts it:
“Any change unsettles people and they need reassurances… communication is really, really important internally and externally.”
Michelle doesn’t just identify pitfalls, she helps founders avoid them. As Head of Deal Origination at MHA Corporate Finance, and with 20 years at one of the Big Four firms behind her, she’s guided leaders through funding rounds, exits, employee ownership trusts, and management buy-outs. Having seen deals unravel from both sides of the table, Michelle knows the stakes: when communication falters, trust collapses and deals die.
The numbers back this up. A 2025 Deloitte survey of 400 global dealmakers found that 62% of failed M&A transactions in the past three years cited “talent loss or cultural misalignment” as a critical factor in deal breakdowns, with executives highlighting poor internal communication during deal preparation as a major driver of employee exits and morale decline. The report stresses that internal communication gaps about strategy and uncertainty undermine retention and ultimately surface during due diligence, eroding buyer confidence.
The Legal Handcuffs Problem
The communication challenge starts with legal reality. When a listed company wants to acquire you, Michelle explains:
“You might not be able to communicate that until it’s actually being sold… it might give someone an unfair advantage that they’re going to go and buy stocks and shares.”
This creates a dangerous paradox. You’re legally bound to silence, but silence breeds rumours. Your best people start updating LinkedIn profiles. Key clients begin questioning commitment. Suppliers worry about payment terms. The information vacuum fills itself with worst-case scenarios.
The ESG Reputation Trap
Modern investors care about more than numbers. Michelle points to companies like Brewdog:
“All the press they’ve received in terms of the removal of the living wage and Glassdoor reviews could mean an investor or buyer may not see them as attractive.”
The ESG (Environmental, Social, Governance) conversation isn’t just corporate theatre anymore. Investors need to be seen backing companies that treat employees well, pay living wages, and manage supply chains responsibly. Bad internal communications about these issues can make your company uninvestable, regardless of your financials.
The Two-Year Communication Strategy
Smart founders start their communication strategy 24 months before any deal conversations. Michelle is clear: “If you were looking to market your business for sale, having at least two years” gives you time to craft the right narrative.
The timeline breaks down like this:
24-36 months out: Build the growth trajectory story. Your team should understand where the company is headed and why their roles matter.
12-24 months out: Focus on operational excellence messaging. Emphasise stability, process improvements, and team development.
6-12 months out: Shift to market positioning. Help your team understand your competitive advantages without revealing deal intentions.
Deal execution phase: Crisis communication mode. Prepare messages for if talks leak or fail.
Sector-Specific Communication Challenges
Not all businesses are created equal in investor eyes. Michelle is blunt:
“If you’re a tech business, you might manage to get eight times, ten times your EBITDA number. If you’re in construction, it might be two or three times.”
This creates different communication challenges. Tech companies must manage AI buzzword fatigue while proving real substance. Construction companies must communicate value despite sector bias. Fintech businesses face the partnership inflation problem – the difference between “we’ve secured a partnership with Mastercard” versus “we’re in early-stage discussions.”
The Management Buyout Exception
When your management team becomes your potential buyer, communication gets complex. Michelle helps founders navigate this:
“Do they want to buy the business and do an MBO? So we try to talk to them early, we help them start thinking about their options.”
The messaging challenge becomes cultural versus capital. Do you optimise for maximum valuation or cultural preservation?
The Simultaneous Announcement Strategy
When deals close, communication must be surgical. Michelle explains:
“We share that communication with the market and the staff, to reassure customers and suppliers who need to understand.”
The best exits she’s seen follow a coordinated playbook: the moment external announcement hits, internal teams receive their briefing simultaneously. Customers get reassurance calls. Suppliers receive continuity confirmations. Nothing is left to chance or interpretation.
Three Critical Questions
Before any exit conversation begins, Michelle suggests founders ask themselves:
- If our deal talks leaked tomorrow, what would our team assume about their futures?
- What reputation exists in the market about how we treat people?
- Who would potential buyers want to meet in our organisation – and what would those people say?
The companies that exit successfully don’t just have compelling numbers and vision. They have teams that trust the journey, partners who believe in the transition, and markets that respect their reputation.
Michelle’s message is clear:
“You really want to do it right the first time.”
In fundraising and exits, there are rarely second chances. The communication strategy for success starts long before the first investor meeting, and it begins with the conversations happening inside your own walls.
The deals that die aren’t always killed by bad numbers or weak vision. Sometimes they’re destroyed by the silence in between.
*Views expressed are personal
