Whether you plan to sell your bank or are in the market to acquire one, there are several sticking points that can delay the transaction. It can be helpful for both potential buyers and sellers to think about how such items may affect their future opportunities.
Executive Compensation Arrangements
Executive compensation arrangements have derailed a number of transactions. You will need to consider what deferred compensation, salary continuation, supplemental executive retirement plans and equity incentives, among other factors, exist at your institution. Will they be triggered? Are they funded — even if a sale accelerates them? You may also need to be aware of tax implications under 409A or 280G of the Internal Revenue Code.
