You will need to weigh the situation.

If it were my company, we have a Core Value of "Truth", and we have an expectation of open communication with each other and with our clients. Therefore, if it was me, by running this through our values it would be a no brainer to tell people not just what was going on with me personally but also the decision to sell the company.

The other stuff about it being good for them and they'll make out on the deal - you don't have any control over how they'll feel about it. They may feel cheated, betrayed, or they may feel ecstatic. You can't know, and it's not up to you to decide for them. However, you can give them the information so they can make the choice.

Or, if you are a company where communication is lacking, transparency is not a value, and you honestly don't care what they think, then don't bother.

(Since you said you're keen to tell them though, I'd go with your gut.)

Honesty is always best, especially if its for personal reasons. Your colleagues/employees should be understanding. And it sounds like having everyone in on it will provide some additional value for the sale. Win-win.

I've played a large role in 3 exits and found that transparency has always been the best policy. I would make sure you spend individual time with each exec to make sure they are completely comfortable.

In one of my exits we let the whole company of 40 people know very early on that we were taking the company to market. We set up a incentive plan to ensure everyone was aligned and working towards growing value.

At smaller companies the team will pick up on acquisitions very quickly: asking your team to answer prepare certain reports, answering due diligence questions, strange visitors, etc. It is better for you to control the narrative then let the rumor mill spin out of control.