The Right Focus for Bank Exit Success: A Community Bank CEO's Roadmap
Every bank sale is unique, just like the bank itself and the leaders who built it.
But I've found that successful bank sales follow a pattern.
This pattern matches what author Bo Burlingham describes in his book "Finish Big: How Great Entrepreneurs Exit Their Companies on Top."
Burlingham found four stages in the exit process:
- Stage One: Exploratory
- Stage Two: Strategic
- Stage Three: Execution
- Stage Four: Transition
Understanding these stages can make the difference between an exit you celebrate and one you regret.
What Makes a Successful Exit?
Before we look at the stages, let's understand what makes a "good" exit.
Based on my experience and Burlingham's research, four things stand out:
- Fair Pay - The CEO and shareholders feel properly rewarded for their risks and work
- Pride in Achievement - Leaders feel they built something valuable and meaningful
- Satisfaction with Others' Outcomes - They feel good about how employees and customers were treated
- New Purpose - Former owners find meaningful activities beyond banking
Notice that only the first one is about money.
The others – which often determine your long-term happiness – are about legacy, relationships, and finding new purpose.
Stage One: Exploratory
This first stage is about honest self-reflection.
It involves:
- Identifying what really matters to you in a sale
- Deciding what you won't compromise on
- Thinking about life after banking
- Setting initial financial goals
- Creating a possible timeline
Many bank CEOs skip this stage and focus only on price.
That's a mistake.
The exploratory work builds the foundation for decisions that affect not just your bank's value but also your personal satisfaction.
Ask yourself:
- How involved do you want to be after the sale?
- How important is your bank's culture and community commitment?
- What financial security do you need?
- What would make you proud five years after the sale?
Stage Two: Strategic
This is where you start seeing your bank through a buyer's eyes.
This stage involves:
- Building qualities that maximize value
- Creating options so you're never forced to sell under pressure
- Making sure key functions don't depend on just one person (including you)
- Strengthening systems and processes
- Documenting what makes your bank special
The strategic stage is about making choices that position your bank for the ideal exit – even if that exit is years away.
The most successful bank CEOs start this process 3-5 years before they plan to sell.
They build a bank that could be sold tomorrow, whether that's the plan or not.
Stage Three: Execution
This is the actual sale process – from first conversations to closing.
It includes:
- Choosing the right advisors
- Approaching potential buyers
- Working through due diligence
- Negotiating terms
- Managing regulatory approvals
- Communicating with stakeholders
- Closing the deal
The execution stage is where preparation meets opportunity.
Those who did the work in stages one and two have more options and power here.
Important insight:
Success in this stage isn't just about getting the highest price.
It's about finding the right fit that matches the priorities you identified in the exploratory stage.
Stage Four: Transition
The final stage begins at closing but continues long after.
This is about:
- Ensuring a smooth handoff
- Helping employees navigate the change
- Maintaining customer relationships
- Finding your new identity and purpose
- Using your financial and experience assets wisely
Many bank CEOs underestimate this stage, thinking their work ends at closing.
In reality, how you manage this transition affects both your legacy and your personal satisfaction.
The happiest former bank leaders I know had clear plans for their "next chapter" well before the sale closed.
The Process Isn't Always Straight
Burlingham wisely notes that these stages often overlap and circle back:
- What you learn during execution might make you revisit your strategic decisions
- New insights about life after banking might change your priorities
- Market feedback might prompt strategic adjustments
This is why starting early – ideally years before a sale – gives you flexibility to refine your approach as you gain new insights.
Beyond the Money
As you think about your eventual exit – whether next year or years from now – remember that the financial outcome, while important, is just one part of success.
The bigger challenge is finding what will replace the purpose, community connection, and leadership role that banking has given you.
The bankers who truly "finish big" use their exit not just to get money but as a steppingstone to an even more meaningful chapter in their lives.
Your Action Plan
- Make Time to Reflect - Schedule quiet time to think about the four stages and what they mean for you
- Start a Journal - Write down what would make a successful exit for you personally
- Read About Exits - Besides Burlingham's "Finish Big," I suggest my book, "The Art of Selling Your Bank: A Bank CEO's Step-by-Step Guide"
- Talk to Former Bank CEOs - Connect with those who've sold successfully (and some who haven't)
The path to a successful bank sale isn't found in shortcuts or tricks.
It's built through careful preparation, strategic positioning, and clarity about what truly matters to you.
What stage are you in today, and what's your next step toward a successful exit?
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.
