Community Bank CEOs: How to Announce Your Bank Sale Without Losing Control
Your board just said yes.
The buyer's board is about to do the same.
You've kept this secret for months.
Now you're about to tell everyone.
This is announcement day.
And it's going to be intense.
The Perfect Plan vs. Reality
Here's what should happen:
You and the buyer spend a month planning every detail.
Every message is polished.
Every question has an answer.
Everything rolls out smoothly.
Here's what actually happens:
You get two- or three-days' notice.
You scramble to coordinate.
You do your best to get ready.
Welcome to the real world of bank mergers.
Who Needs to Know
You're about to tell five different groups:
- Your management team
- Your employees
- Your advisory board (if you have one)
- The media
- Your customers
This is your first real team effort with the buyer.
You'll start talking about "us and them."
Eventually, it'll just be "us."
But you're not there yet.
The Coordination Dance
The buyer might be a public company.
If so, they have strict rules to follow.
The announcement might need to wait until after the market closes.
Filings have to happen before it opens again.
These rules aren't suggestions.
They drive the timeline.
You'll need to share your message with the buyer first.
They'll review it.
They might share theirs with you.
Or they might not.
Your messages don't have to match word-for-word.
You're two different organizations.
But they should tell the same basic story.
Both should be positive.
Both should hit the same main points.
What Your Audience Doesn't Know
You've lived with this deal for months.
You know every step of the process.
You understand how long things take.
Your audience doesn't know any of this.
They think it's simple.
The announcement happens.
A switch flips.
Signs change overnight.
Tomorrow they're part of a new bank.
They have no idea what's really coming.
You need to understand this gap.
It's where confusion lives.
Your job is to bridge it.
The Message That Matters
Think about what each group needs to hear.
Build that message.
Make it clear.
Make it honest.
But here's the critical part:
Don't oversell it.
The deal isn't done yet.
Things outside your control could delay it.
Or stop it completely.
Another crisis could hit.
Regulatory approval could fall through.
The buyer could have unexpected problems.
You could have unexpected problems.
It happens.
Prepare for problems.
Hope for the best.
Keep your message professional and measured.
Don't get so excited about the future that you can't go backward if needed.
You might have to rebuild your standalone brand if things fall apart.
The Questions They'll Ask
Everyone wants to know three things:
- Why is this happening?
- How does this affect me?
- When does this happen?
They have zero context.
In their minds, this is happening tomorrow.
That “flipped switch” thing again.
Set their expectations straight.
Your Shareholders Want to Know:
- "How much is my stock worth?"
- "When do I get paid?"
Your Employees Want to Know:
- "Do I still have a job?"
- "What happens to my pay?"
- "What does this mean for me?"
Your Customers Want to Know:
- "How does this impact my business?"
- "Will I work with the same people?"
- "Are my products and services changing?"
These questions write your outline for you.
The Announcement Timeline
Coordinate everything with the buyer.
They set the pace.
Morning: Management Team Meeting
Brief your management team first.
Give them a few hours' head start.
They'll face questions from their staff right after the all-employee announcement.
They need time to process the news.
If you have Change in Control agreements or Stay-Put deals with them, they'll probably be supportive.
They benefit from the merger.
Remind them about their confidentiality requirements.
They can't risk their payouts by talking early.
Consider having them sign Insider Agreements before you share details.
Explain that board members signed the same agreement.
Give them time to read it and ask questions.
Talk to your lawyer about this. (I'm not one.)
Late Afternoon: All-Employee Meeting
If the buyer is public, this happens right after the market closes.
The buyer might want to attend.
Let them.
Follow their lead.
But remember: the deal isn't done.
A smart buyer knows this too.
If your buyer pushes too hard or wants to say things you're not comfortable with, call your team.
Get your lawyer and investment banker involved behind the scenes.
The buyer will probably want to speak after you.
They might want to see your comments first.
They might not share theirs with you.
Expect this.
They'll likely bring department heads and HR people.
These people will help answer employee questions and explain what comes next.
Before everyone leaves, hand out two things:
1) A copy of the press release
2) A frequently asked questions sheet
The FAQ is your talking points in a different format.
People process information differently.
Some need to read it multiple times.
Your employees will get questions from family and friends tonight.
Some customers will call.
The FAQ gives them a resource.
While your employee meeting happens, the buyer's press release goes out.
You might see it first.
You might not.
You should get a copy as soon as it goes live.
Evening: Advisory Board Meeting
If you have an advisory board, bring them in for a special meeting.
These are your biggest and most influential customers.
They should hear this from you, not from the news or from a competitor trying to steal their business.
They also get to meet the buyer immediately.
This benefits everyone.
Give them the press release and FAQ before they leave.
After the Meetings
You crafted an email to shareholders earlier.
Don't send it until after all the announcements.
Make it specific to shareholders but keep it similar to your employee message.
Include the press release and FAQ.
Tell them more details are coming in the weeks ahead.
This message comes from you.
The buyer will want to see it first.
Usually, this goes through lawyers.
Your lawyer sends it to their lawyer, who shows the buyer.
Build time into your schedule for this review.
Stay Disciplined
The press will call.
Customers will call.
Shareholders will call.
Use your talking points.
Stay on message.
You'll feel relief.
The secret is out.
That weight on your shoulders is gone.
You'll want to relax.
Don't.
You've come too far.
This matters too much.
There's time to relax later.
Your Action Plan
Close your eyes.
Picture this entire day.
Walk through each meeting in your mind.
Think about the message you'll give each group.
Imagine how people will react.
What questions will they have?
This mental rehearsal unlocks things you haven't considered.
Do it multiple times.
You'll be ready.
The Bottom Line: Announcement day isn't the finish line. It's the starting gun. Keep your message clear, your expectations realistic, and your discipline intact. Your stakeholders are counting on you to guide them through the confusion. Show up prepared, stay steady, and save the celebration for when the deal actually closes.
P.S. I'm not a lawyer, an accountant, or an investment banker. Just a former bank CEO who has been in your shoes.
There are zero hacks or tricks in this newsletter. Just proven tactics that help you choose the right path for your bank.
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 on a timeline of their own choosing – 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.
If you would like access to all prior newsletters - click here.
Not a subscriber? The newsletter is free - click here to become one now!
