Invictus News and Press

8 Q&As before you try M&A

There’s no doubt that the community bank market is in the midst of an M&A sea change. Here are some of the common questions bankers have been asking in this new environment.

Q1. We want to acquire banks, but the biggest problem we have in our market right now is a lack of sellers. Until that changes, how are acquisitions a practical option?
Q2. The asking price for some of banks seems outrageous. When do you think the valuation expectations of selling banks will come back to earth?
Q3. I feel like I know and have talked to most of the other players in my market. In some cases, I think I know them better than they know themselves. How could I possibly still gain some kind of edge with analytics?
Q4. Do transactions occur between a buyer and a target that wasn’t originally in play?
Q5. Pundits have been predicting a massive consolidation in banking for years. Will it ever happen? If so, what will be the tipping point?
Q6. We have been thinking about acquisitions, but we are in the process of a core systems conversion and have several other internal projects on the horizon that are tying up resources. What do you think the M&A environment will be like in, say, nine to twelve months from now, when we think we may be ready?
Q7. Are you suggesting we have to make a strategic adjustment?
Q8. Do I have to work with an investment banker if I want to acquire banks?

See Banking Exchange for the full article -- with answers!