Pub. 5 2016 Issue 3

April/May 2016 31 l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s will this impact my job? These questions should be addressed quickly and comprehensively. Even communicating with employees about when they can expect answers is important. After speaking to the broader group of employees, the buyer should make its executive team available for one-on-one meetings with key employees. This additional time with key employees will let them know they’re valued and will allow time to address concerns that may be specific to individual employees. Along with the effort to reduce uncertainty, buyer and seller should work together to assemble a vision for the combined organization. If you share a vision of two organizations coming together in a partnership that benefits everyone involved, employees will give the acquiring institution an opportunity to earn their trust. If a buyer can retain employees through the unsettling period between the announcement of the acquisition and the completion of integration, it has an outstanding opportunity to keep those key employees for the long term. The list of issues that can develop if key employees are handled incorrectly is harrowing: Valuable customer relationships may be lost, revenue growth potential can quickly evaporate, cost savings may not be realized, processes and policies are not integrated quickly, synergies may be missed, the work environment can degrade and an “us versus them” mentality develops. The importance of finding acquisition targets with outstanding employees and strong customer relationships is one of the significant reasons many successful acquirers are proactively initiating discussions with potential targets. Acquirers know some community banks will not go through a full auction process when deciding to sell, and successful acquirers don’t want to miss an opportunity to pursue an institution with a roster of outstanding talent. Although there are significant hurdles to overcome when pursuing, completing and integrating an acquisition, there also are significant opportunities for those leaders willing to boldly pursue the right opportunities for their bank. This article is for general information purposes only and is not to be consid- ered as legal advice. This information was written by qualified, experienced BKD professionals, but applying this information to your particular situation requires careful consideration of your specific facts and circumstances. Consult your BKD advisor or legal counsel before acting on any matter covered in this update. Article reprinted with permission from BKD Corporate Finance, LLC , bkd.com. All rights reserved. Wyatt Jenkins is a member of the BKD Corporate Finance Division. He manages corporate finance engagements, including mergers, acquisitions and strategic affiliations, company sales and divestitures, recapitalizations, management buyouts and succession planning. COMMITMENT COMMUNITY ABA Foundation The ABA Foundation Community Commitment Awards recognize and promote the essential role banks play in their communities. This national award program celebrates financial institutions of all asset sizes and charters. Entry period opens May 1st Visit aba.com/AwardsKS to learn more. Kansas bankers: submit your bank’s programs that demonstrate corporate social responsibility today. Entry deadline is July 1.