The word “acquisition” can conjure up the best and worst-case scenarios, and in fact, the news is filled with examples of each. Just what makes one acquisition a success and another a disappointment? Is it timing, the market, or a set of thoughtful processes?

The answer is all of the above, and then some. Financial institutions that are in a position to sell will find that the current market is very strong. However, that, in and of itself, won’t guarantee the best selling prices or the most favorable experience. Having too many suitors can be just as challenging a proposition as having too few.

To achieve the most desirable outcome and avoid surprises at closing, sellers need a well-planned approach and well-defined expectations. These five insights can aid in the successful sale of the financial institution.

1. Prevent emotions from driving the deal. An institution invests a tremendous amount of time and energy in building the business. Many institutions have been closely held for several generations. Add to this the deep-rooted devotion an institution has for its customers, employees and community, and it’s easy to understand the bias the institution harbors when it comes to its worth. Nevertheless, selling is the single most important business decision in the life of any company. Price is important, but it’s not the only factor when considering acquisition bids. Maintaining a practical perspective above all else and securing independent oversight will help uphold the institution’s new future.

2. Protect confidentiality.No one should know the institution’s intentions until it’s ready to announce them. That includes buyers. If the institution hired the right advisors, they understand the utmost importance of guarding your confidentiality. They should ensure it until such time as a confidentiality agreement is signed and beyond as it relates to customers and community.

3. Find buyers with intentions that match your own. Every financial institution has its reasons for selling. Some want to extend their business. Others want to relinquish it. Likewise, buyers have their own rationale behind the acquisitions they seek.

   An advisor can help a seller clearly identify what to look for in an acquisition. With objectives in place, the advisor can create a sound perspective and effectively target an optimal list of potential buyers. The closer the alignment of strategy and, in some cases, geography between the seller and the buyer, the greater the chances for success.

4. Apply scrutiny, uphold integrity. Financial transparency is critical from both sides of the acquisition and being forthcoming with information will help facilitate progress. By the time the acquisition process has advanced to the due diligence phase, sellers should have complete confidence in their numbers and in those of potential buyers.

   Although regulatory review and approval is primarily the buyer’s concern, an advisor with the right experience will know what regulators ask for and can review the application on behalf of the seller to help expedite the process.

5. Maintain business as usual. Selling can become a significant distraction. Many companies come to a standstill while in the midst of an acquisition. The institution still has a business to operate. Trying to manage the details and technical aspects of the overall transaction process can disrupt the business. Focus on day-to-day responsibilities, exercise reasonable attention to acquisition matters, and let a trusted advisor represent your best interests.