Success And Failure In Bank Auctions: Part One

The twin pressures of succession planning and increased regulatory burdens have caused many bank owners to consider selling their banks.

What is the best way to sell your bank? Often a buyer is found from long-standing relationships and shared visions for community banking. A desire to keep a bank or at least a branch in a community weighs heavily in the decision, and a wish to protect employees is also a factor. This might lead to one-on-one negotiations with another bank, but an auction or bidding process has become very popular in recent years. In many ways, this is the best means to find the best price for your bank. A classic auction from years gone by illustrates how an auction can generate the best price.