Description

Strategic conversations rarely start in the boardroom.

They start at conferences. Over lunch. Through “deal-maker” introductions.
 And by the time a CEO realizes what’s happening, control is already gone.

In this episode of the Community Bank Value™ Playbook, Kurt Knutson explains why uncoordinated strategic conversations destroy value — and how boards protect shareholders by establishing a clear governance framework before unsolicited interest arrives.

This isn’t about deciding to sell.
 It’s about fiduciary responsibility and controlling the conversation — so the bank doesn’t get controlled by it.

What You’ll Learn

• Why boards often think they control strategic conversations — when they don’t
• How loose “sprinkles” of interest become rumors, pressure, and exposure
• The real risks of uncoordinated conversations (including liability)
• Why every bank should have an Unsolicited Offer Policy
• The three ways boards approach the market (and the trade-offs of each)
• Why boards must decide the approach before any outreach begins
• The danger of self-selecting out potential buyers too early
• Why fiduciary duty requires structure — not emotion

The Core Tool: The Unsolicited Offer Policy

This is not a legal document.
 It’s a board-level protocol that creates control.

It does three things:

• Channels all strategic conversations through one person
• Reports approaches consistently to the full board
• Establishes optional thresholds so low-value approaches don’t create noise

Result: control instead of chaos, protection instead of exposure.

Three Approaches to Market

1) One Buyer (Maximum discretion)
Quiet, controlled — but minimal competition and real shareholder risk.

2) Auction (Maximum competition)
Strong price discovery — but low discretion and high disruption.

3) Strategic Approach (The sophisticated option)
Targeted outreach + controlled competition + managed confidentiality.

Hard Truth Mentioned

You can’t change paths mid-stream without losing credibility.
 Boards must align on the framework first — then begin conversations.

Resource Mentioned

📘 New Listener Resource Guide
An overview of the foundational episodes and links to the free resources referenced throughout the series — all in one place.
👉 Linked here: Guide

About the Show

The Community Bank Value™ Playbook is a weekly video and audio series for community bank CEOs who want clarity, control, and optionality — whether they remain independent or explore opportunities someday.

About Kurt Knutson

Kurt Knutson is a founder, former CEO, and chairman of a community bank. He has lived through every phase of a bank’s lifecycle and shares practical, experience-based insight to help CEOs lead with confidence.