Bank Mergers: The deal closed. What do your employees want to know?
The focus here is primarily for bank buyers, but it has contextual value for sellers as well.
This is being provided as an aid to make your acquisition go as successfully as possible.
Please read it in the spirit in which it is intended.
If you get good at this, you will distinguish yourself in your employees’ eyes and that, in turn, will be felt by your customers.
In addition to the employee interaction that has taken place since the announcement, you will want to have an employee meeting blitz as well.
By that I mean a concentrated effort to sit down for a face-to-face meeting with each employee.
The goal of the employee meeting blitz is to make certain you can alleviate any fears they have that their role in the bank is being disrupted by the change.
It may seem like you just did this within the past 90 days, but it’s time to do it again following the closing of the merger.
There’s no such thing as over communicating.
Your competition has been calling on your newly attained employees non-stop since the announcement.
They will be ramping it up further post-closing.
It is important to understand that switching to another employer comes at a cost.
It is very disruptive to your employee’s life.
What they really want is to not have their employer become a distraction to what they do on a day-to-day basis.
They want to know that the time they have invested in their career is going to be put to good use.
They want to know they are not going to be going through abrupt role or wage and benefit changes without an ability to smoothly incorporate the changes into their lives.
And they want to know that the “new guys” know who they are, respect them, and want them.
The employees are less interested in logo items branded with the new brand and statements about who you are.
Those statements that may be true but are boring and have no meaning because they are said by everybody all the time.
“We care about our employees.”
It’s just noise if not accompanied by actions proving the claim.
I guess the only good thing about corporate platitudes is that you can count on the competition’s message to your employees being, “We’re reaching out to see if you’re interested in an exploratory call to see if there are potential synergies.”
Terms and phrases that mean nothing but sound cool.
It’s filler.
That kind of talk takes the place of the real work they need to do to communicate the role they are recruiting for.
There is a natural tendency to turn inward to focus on the changes going on in your world post-closing, but that urge needs to be tempered with the need to call on the new employees.
It’s the right thing to do.
You have made a major investment and are counting on the future earnings power of the bank you just acquired to pay for the acquisition and contribute to even higher earnings for the combined bank.
The work you put into the year following the closing date, if done properly, will pay repeatedly into the future.
Resist the temptation to think, “Well, that’s done. What’s next?”
You have too much riding on this.
Action Plan:
- Think through the employees of your bank.
- Review a list of all employees and prioritize the list, giving consideration to who has the most impact on the bank to the least. Your management succession plan should be a great guide.
- How would you present each employee to the buyer of your bank?
- What would the buyer want to know about each employee?
Your path will:
- Inform your strategic plan.
- Guide your annual business plan and budget.
- Clarify priorities.
- Define your message so it can be communicated with confidence.
This is how savvy bankers navigate.
They build smart and valuable banks and choose the best time to sell – serving the needs of the shareholders and the board.
I hope you found this short lesson helpful.
What are your thoughts?
I’ll see you next week.
Categories
All Categories a bank ceo's step-by-step guide account management accountability acknowledgment acquisition costs acquisition planning acquisition readiness acquisition risk acquisition strategy acquisition success acquisition target acquisition targeting advisory board annual business planning annual meeting annual meeting strategy annual meetings asset size auction process authority transition balance sheet management balance sheet optimization balancing act bank acquisition bank capacity bank ceo bank culture bank directors bank examination cycle bank exit planning bank exit strategy bank financials bank leadership bank m&a bank m&a strategy bank management bank merger bank mergers bank multiples bank operations bank profitability bank sale negotiation bank sale preparation bank sale process bank sale strategy bank scale bank shareholder value bank story bank succession planning bank valuation bank valuations bank value banking banking economics banking leadership banking relationships banking scale benefits communication board alignment board and shareholder alignment board approval board decision making board documentation board education board expertise board governance board management board meeting board meetings board members board of directors board preparation board recognition board recommendation board relations bond portfolio management book vale dilution brand inventory brand transition business continuity business development business model evaluation business preparation business psychology buyer evaluation buyer identification buyer interest buyer meetings buyer outreach buyer perspective buyer presentation buyer questions buyer relations buyer relationships buyer research buyer screening buyer types buyer's perspective buyer-ready bylaws review calling blitz capital constraints capital planning capital policy capital strategy career development career pathing career reflection career transition cash vs stock cash vs stock offers ceo disengagement ceo leadership ceo mindset ceo preparation ceo role ceo transition certainty of closing certificate surrender change management change-in-control agreements client briefings closing checklist closing day commecial lending commmunity banking communication strategy communication systems community bank community bank ceo community bank merger community banking community bankng comparable transactions competitive advantage competitive analysis competitive bidding competitive intelligence competitive positioning competitive threats competitor analysis competitve recruiting complementary acquisition confidential information memorandum confidential process confidentiality confidentiality agreements confidentiality management confidentiality protection consistent performance continuity planning contract management contract negotiation contract obligations contract terms core earnings core processing core processing contract core system migration corporate administration corporate communications corporate culture corporate documents corporate governance cost structure analysis cost synergies covid impact credit quality credit union acquisitions culteral consistency cultural assessment cultural compatibility cultural fit cultural fit concerns cultural sensitivity cultutral fit customer anxiety customer communication customer diversification customer experience customer information customer loyalty customer relationships customer retention customer service customer trust customers d&o insurnace data management data room management deal announcement deal closing deal comparison deal completion deal confidentiality deal evaluation deal execution deal fatigue deal lawyers deal leverage deal management deal positioning deal process deal protection deal risk deal structure deal structuring deal team deal terms deal timeline decision making deconversion costs definitive agreement delegation delegation skills deposit diversification deposit growth deposit mix digital transformation director liability discounted cash flow discretion management document management due diligence due diligence preparation duty of care duty of loyalty early termination fees earnings impact earnings sustainability efficiency ratio electronic delivery emotional intelligence emotional preparation employee appreciation employee benefits employee communication employee development employee engagement employee management employee morale employee motivation employee protection employee respect employee retention employee transformation employer branding engagement strategy environmental inspections equity investment executive compensation executive engagement executive leadership executive transition exit planning exit planning for banks exit stages exit strategy expense management face-to-face meetings fairness opinion family-owned banks faq development fdic data federal home loan bank fee income growth fee income oppotunities fee income streams fee structure fiduciary duty fiduciary responsibility final negotiations financial anaiysis financial analysis financial planning financial projections financial reporting first impressions forward-thinking leadership franchise value future acquirers future planning future potential general counsel generational shifts geographic expansion geographic footprint golden window good faith gratitude perspective growth narrative growth opportunities growth potential growth strategy growth trajectory herd mentality hidden value how to sell a bank how to sell your bank human resources independent directors independent thinking information control information leaks information security initial offers insider agreements institutional knowledge integration planning integration timeline interview techniques intrinsic value investment banker role investment banker selection investment bankers investment banking ipo (initial public offering) irs 280-g rules key employees key personnel knowledge management kurt knutson leadership change leadership communication leadership confidence leadership development leadership grace leadership gratitude leadership legacy leadership styles leadership transition legacy brand legacy building legal agreements legal counsel legal documentation legal expertise legal fees legal representation legal responsibilities lending limits letter of intent letter of intent (loi) letter of transmittal leverage matrix lifecycle management liquidity event loan participations loan portfolio loan-to-deposit ratio m&a (mergers & acquisitions) m&a process m&a strategy management assessment management depth management development management meetings management philosophy management succession management team market competition market conditions market cycles market demographics market education market intelligence market opportunity market position market positioning market research market specialists market strategy market testing market timing market valuation market value material adverse change maximizing deal value media relations meeting follow-up meeting preparation meeting strategy meeting structure mental health mental hurdles mental preparation merger agreement merger agreements merger consideration merger economics merger integration merger mindset merger of equals mergers & acquisitions (m&a) message coordination milestone recognition minimum price multi-genrational banks multiple approach valuation negotiation preparation negotiation strategy net present value next chapter planning non-binding offers non-compete agreements non-core earnings non-disclosure agreements objective analysis ocassional acquirers offer analysis offer comparision offer evaluation one-buyer approach one-on-one meetings operating independence operational assistance operational consistency operational decisions operational efficiency operational independence opportunity assessment organizational change organizational culture organizational development organizational excellence ownership concentration ownership structure past vs. future focus paying agent payment processing per-share value performance managemnt perfromance metrics personal fulfillment personal growth physical signage policy development portfolio analysis post-announcement period post-closing celebration post-closing integration post-closing period post-closing process post-closing strategy post-loi management post-merger integration post-sale planning post-sale role power dynamics power shift premium buyers presentation skills press release price negotiation price-to-book multiples proactive planning process control process documentation process management professional communication professional development professional growth professional guidance professional identity professional leadership professional presentation professional representation professional reputation professional responsibility proxy materials psychological traps public communication readiness assessment real estate surveys regulatory approval regulatory burden regulatory compliance relationship banking relationship buiding relationship building relationship management reputation risk responsibility shift retention strategy return on assets (roa) return on investment revenue producers reverse engineering risk assessment risk management risk mitigation roi analysis role adjustment role profilinig role transition rural banking sale preparation sale strategy sale-ready sales process sales strategy savvy banker strategies scalable oprations scale advantage sell your bank sell-side advisory seller psychology seller's mindset selling on your terms selling your bank senior leadership serial acquirers share conversion shareholder analysis shareholder approval shareholder communication shareholder data shareholder legacy shareholder meeting shareholder payment shareholder protection shareholder records shareholder relations shareholder return shareholder returns shareholder rights shareholder value shareholders silent running perios (pre loi) social media management special meeting stakeholder management stay-put agreements stock certificates stock transfer agent strategic alignment strategic alternatives strategic asset strategic communications strategic decision making strategic distance strategic fit strategic flexibility strategic growth strategic hiring strategic leadership strategic optionality strategic options strategic partnerships strategic planning strategic positioning strategic process strategic thinking strategic timing strategic value strategic value creation strategic vision stress management succession planning succession strategy sustainable growth system conversion systems and processes systems thinking talent acquisition talent assessment talent development talent identification talent management talent protection talent retention talent scarcity talent succession planning tanible book value (tbv) team building team confidence team independence team preparation team recognition technology capabilities technology integration the art of selling your bank third-party contracts three-step plan timeline planning track record training development transaction analysis transaction approval transaction attorneys transaction complettion transaction conditions transaction costs transaction execution transaction management transaction process transaction security transaction timeline transaction timing transition management treasury management unique value proposition urban banking valuation methodology valuation methods valuations value assessment value creation value drivers value enhancement value maximization value optimization value proposition value-based strategy vendor management virtual data room voting process voting rights wealth management websire migration weekly reporting work-life balance workforce planning written offers