Community Bank CEOs: The 3-Person Team That Sold Our Bank Successfully
Your investment banker just called with good news—three serious buyers want to move forward.
Then reality hits:
They want detailed information about everything.
Hundreds of documents.
Thousands of questions.
Who can you trust with this sensitive information?
How do you keep your sale secret while getting the help you need?
Here's how we built a three-person deal team that successfully sold our bank.
Why We Started with Just Three People
Our deal team had exactly three people for months:
- Me (CEO)
- Our president
- Our CFO
No one else knew we were exploring a sale.
Why so few?
Every person who knows creates risk.
Risk of leaks.
Risk of employee panic.
Risk of your best people leaving.
The sale of our bank worked because the president and I had worn multiple hats for years.
We knew every aspect of the operation.
Our president could answer questions about every commercial customer and speak to our loan portfolio down to individual borrowers.
Your Team Will Look Different
Your situation will be unique based on your bank's size and your team's knowledge.
You might need your chief credit officer early if your president lacks deep credit knowledge.
You might need your IT leader if technology questions arise.
You might need HR if employment issues are complex.
Key questions:
- What knowledge will buyers need?
- Who has that knowledge?
- How do you get answers without adding more people?
Start small.
Add people only when you absolutely need their specific knowledge.
The Culture That Made It Work
Before sale discussions, we built a culture focused on shareholder value.
Everyone understood this was a business.
The team was managing a project that happened to be a bank.
This made bringing our CFO into the deal team feel natural, not like a crisis.
Why Change-in-Control Agreements Are Essential
Before bringing anyone in, ensure they have change-in-control agreements.
These agreements:
- Make people benefit from a sale instead of fearing it
- Increase focus and secrecy
- Ensure cooperation with buyers instead of "us versus them" attitudes
Without these agreements, bringing people under the tent creates problems.
The Extra Layer of Protection
We added Insider Agreements on top of change-in-control agreements.
Every deal team member signed a separate insider agreement before learning about the sale.
This reminded everyone of secrecy requirements.
Being able to tell buyers that every team member signed both agreements showed our commitment to confidentiality.
The Data Room Challenge
Buyers will request massive information.
Your investment banker sets up a virtual data room where buyers access your information electronically.
They handle document organization, access management, and secrecy agreements.
Without an investment banker managing this, your team could spend countless hours organizing documents.
You have a bank to run.
How We Expanded Later
We added people carefully.
One at a time.
Only when we absolutely needed their knowledge.
Each new member signed both agreements before learning anything.
Expand based on need, not convenience or politics.
Your Decision Framework
Before adding someone, ask:
- Do we absolutely need their knowledge?
- Can someone already on the team provide this?
- How comfortable would I feel having this conversation with them?
- Do they have change-in-control agreements?
- How would they react to sale news?
If you're not confident, wait.
The Bottom Line
Balance knowledge with secrecy.
Start small with people you trust.
Add others only when essential.
Protect everyone with proper agreements.
Your Action Plan
1) Identify core team - Who can handle initial questions?
2) Check agreements - Do key people have change-in-control agreements?
3) Plan expansion - Who might you need later?
4) Prepare for data - How will you handle information requests?
Every person who knows creates risk, but the right team with proper protections creates success.
P.S. I'm not a lawyer, an accountant, or an investment banker. Just a banker who has been in your shoes.
There are no shortcuts or hacks in building the confidence needed for major strategic decisions.
Just proven approaches centered around preparation:
This approach will:
- Inform your strategic planning
- Guide your resource allocation
- Clarify your priorities
- Define your value proposition
This is how savvy bank leaders operate.
They build valuable institutions through preparation, allowing them to choose the optimal path forward on their own timeline – whether that's continued independence or a strategic transaction.
I’ll see you next week.
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