Bank Mergers: Selling CEO – embrace new duties for a fresh start.

The deal closed.

The bank you were CEO of, and the holding company (if applicable) no longer exist.

The duties you had related to the distribution of the merger consideration will remain until they have been fully disbursed.

Employees and customers begin to look beyond your authority to the new “final word.”

That means your duties as the official “final word” went away when the merger closed.

This isn’t a surprise, and it’s not meant to be depressing or to highlight the obvious.

The main point is that with the proper perspective, it can be liberating.

The inescapable issues related to customers, employees, and shareholders now don’t solely rest on your shoulders.

If a decision is made, that maybe is a long way away from a decision you would have made, so be it.

The buyer paid a lot of money to have the right to make that decision, and all you can do is provide input and carry out that decision.

In fact, your role now is being a good advocate.

I’ve witnessed both business owners who’ve sold their business and employees who have been acquired wrestle with this. I have wrestled with it previously, as selling the bank we built wasn’t the first time I was a part of a bank that was acquired.

That’s what eventually led me to thinking about starting my own bank.

Hopefully the situation will be great for all parties involved, but if it isn’t or if you’re no longer needed, just move on. No need to try to belabor the point, no need to try to influence others or make them live through your struggles, just move on.

I was fully aware of the fact that I was going to ultimately be the most duplicated person involved when, and if, we ever sold.

The value in the organization was in the development of the team, the systems and processes that didn’t require my involvement on a day-to-day basis.

My role was to be looking out over the next three to five years to provide direction.

That would no longer be needed because the buyer has that role taken care of.

I will enjoy watching the bank continue to grow, hearing about the development of our employees’ careers, and seeing the continued growth of our customers and their impact on the community.

Our customers bring more job opportunities to the community, their employees purchase homes, they increase trade in the community which in turn provides the resources for better schools and services.  And hopefully our shareholders can redeploy the capital that was returned to them for even more growth in our community.

Will I miss the opportunity to continue to guide the bank into the future?

You bet.

But I am glad I was able to be a part of it and want everyone involved to be successful.

The bank provided opportunities that would not have been presented had I not gone down this path.

I’m sure you feel the same way.

I have worked with people that most people could only dream of being able to call co-workers; they are very talented and caring people.

I have been able to participate in our industry associations and participate on the state banking board with great people.

The bank, and a career in banking, has been good to both me and my family.

I thank everybody involved along the way and wish them all continued success.

Along with things no longer resting squarely on your shoulders, your responsibilities will change as well.

It is important to understand those changes because they can add a spring to your step.

The buyer will be providing direction for your responsibilities post-closing.

Most notably it will be to make the transition as smooth as possible, keep the customers happy, assist the team through the transition, bring in new business, collaborate with the new team members, and be a positive addition to the culture.

There are responsibilities you’ll no longer have post- closing as well.

It is worth mentioning because one has a way of thinking of change as adding to your already long list of things you need to accomplish.

That’s not actually the case here.

Change can bring rejuvenation to your career with the right perspective.

You’ll be able to reclaim some of your time, which will be a trade-off for the new responsibilities.

Think through the responsibilities you have that are periodic such as exams. You will still participate in them, but you now aren’t ultimately accountable for the results and the follow-up.

Think about the annual duties you have that you, again, likely will participate in but are not accountable for the entire project.

Things like the annual business plan and the budget.

The annual shareholders meeting and all that goes with it from preparing the proxy materials to delivering them and to preparing for and holding the meeting.

The quarterly duties such as call report preparation, review, and submission. The preparation and review of the quarterly board reports like the interest rate sensitivity analysis, ACH and remote deposit capture review, and the review of the allowance for loan and lease losses report.

No more monthly board meetings to prepare for.

Or monthly Asset/Liability Committee (ALCO) meetings to assemble information, review and prepare for.

No more monthly all-employee meetings to prepare for the review of financials in comparison to budget, and to cover elements of the culture.

These activities, while extremely important, all took a lot of your time.

We haven’t even touched on the weekly and daily responsibilities.

Think about all of those as well.

You may have enjoyed a great many of them and will naturally feel a loss about not being involved in them directly any longer.

Some, you will be glad to see go.

You should also think about the recovery time you will have.

Charge your batteries a bit before moving forward.

Vacation? What’s that?

A change in your perspective will likely do wonders for you.

You probably have had no time to even consider these things until now.

Action Plan:

• Take some time to make a list of things you are currently doing,
• Think about the things that give you energy
• Think about the things that drain energy
• Think about a bank 5-7 times your size and the resources they have in-house
  • Think about the things that drain your energy that will no longer be a part of what you do
  • Think about the things that provide you energy – what types of energy-producing activities could you now get more involved with (in the bank or outside of the bank)
• It’s important to audit these activities and to gain a feel for them as far in advance as possible – this transition for you mentally is very important in moving to the next chapter

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.