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Apr 19, 2017 10:00:00 AM

2017 Bank M&A Survey: What Makes a Successful Acquisition

Despite (or perhaps because of) a turbulent political, economic, and regulatory climate, analyst predictions continue to point to 2017 as an active year for bank M&A transactions. On one side of the coin, it’s because large banks are striving to ‘bulk up’ in the face of regulations. On the other, it’s because small community banks are buckling to shareholder pressures and seeking to exit.

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Topics: M&A, Bank Growth, Hospital Acquisition

Apr 16, 2015 9:26:20 AM

Opportunity is Knocking in M&A

In the recent webinar “Building a Successful M&A Strategy,” co-hosted with Olsen/Palmer, we explored the current mergers and acquisitions (M&A) landscape and its impact on the banking industry. The discussion highlighted a compelling shift in the advantages of smaller banks to capture new growth opportunities. Over the past three decades, we’ve seen the average size of buyers steadily decrease while the average size of sellers has steadily increased.

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Topics: Hospital Acquisition

Aug 28, 2014 11:57:00 AM

Creating Market Value

“If you aren’t growing, you’re dying” is a familiar phrase in the banking industry. It begs an important question.

Why is growth so important?

The short answer is the way in which growth is a catalyst for positive change. The impact of forward motion is measured in multiple ways, including customer service innovations (e.g., Internet banking), new markets, and new product or service offerings. Of course, the impact is reflected ultimately in the bottom line, by measuring revenue and profitability.

In the banking industry, asset size is the most commonly used metric to evaluate a bank’s growth and success. In fact, asset growth is one of the most influential contributors to increased interest by analysts and investors:

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Topics: IPO, Hospital Acquisition

Jul 23, 2014 12:30:00 PM

Am I Paying Too Much for This Deal?

Mergers and acquisitions (M&A’s) represent a great opportunity to increase the value of your bank and to achieve quick growth. For those reasons, there continues to be a rise in the number of M&A deals. In truth, a successful M&A deal can be a great way to help your bank realize its full potential. Yet, there are probably as many instances in which a M&A deal quickly became a (difficult) learning opportunity.

We’re not telling you something you don’t know. Every M&A deal means some risk. But if the appropriate steps are taken during the beginning stages of the process, risk can be minimized. As we have discussed, one of the most important risks to address is overpayment, and there are three key steps involved.

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Topics: Risk Assessment, Negotiation, Hospital Acquisition

Apr 30, 2014 1:00:00 PM

How to Preserve Bank Identity During M&A

In today’s banking environment, new challenges surfacing with the slowly improving interest rates are requiring more focus on interest rate and liquidity risks. These challenges, coupled with the uncertainty of new regulations and added scrutiny from regulators, are heightening the importance of well thought-out growth strategies. Achieving this growth organically can be an uphill battle for most banks, and therefore more and more banks are turning to mergers and acquisitions (“M&A”).

The M&A activity that began to increase during 2013 has not slowed. In fact, the first quarter of 2014 saw 59 transactions, an 18% increase over the same period a year ago. Purchase-price multiples are starting to increase, dormant acquirers are starting to return to the acquisition market, and strategic Mergers-of-Equals are becoming more prominent. All of these signs point to the fact that M&A is rapidly becoming a de facto option for banks seeking significant, expedient growth. 

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Topics: Hospital Acquisition

Mar 26, 2014 9:30:00 AM

Five Factors for Successfully Managing the Upturn

In 2008, the financial crisis did its best to dissolve the American economy. An overabundance of confidence in our financial security led to decisions that crippled the banking industry with foreclosed assets and extensive credit quality deterioration.

Six years later, wisdom gained through hindsight has helped the industry understand what caused the crisis, rebuild institutions, and put preventative measures in place. Make no mistake; banks are still burdened by ongoing margin pressure, risk and regulations. But we’ve found cautious optimism, and can see light at the end of the tunnel.

Our team has identified five key opportunities that can help banks win in the economic upturn:

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Topics: Risk Assessment, Accounting, Bank Trends, Regulations, Hospital Acquisition, Leadership