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Bank Director Magazine - 2001 - M & A Supplement
Introduction : End Game Strategies
Challenges and Opportunities Ahead in Bank M & A
The convergent forces that have worked in concert for the past decade to consolidate the financial industry still exist today: the desire for more efficient operations, the need to eliminate excess capacity, and the necessity to increase shareholder value by expanding the bank’s franchise. Yet the economic downturn and recent stock market volatility have taken their toll—today’s price/earnings ratios aren’t anywhere near the peak levels of two years ago, and both buyers and sellers are carefully scrutinizing their partners.
Still, there are deals to be made. This year has already seen its share of surprises, such as the mid-April announcement by First Union Corp. of its intention to acquire Wachovia Corp. Though the drama surrounding this deal hadn’t played out by the time this special supplement went to press, it’s proof that mergers and acquisitions are alive and well in the boardroom—the place where long-term strategies are created, planned, and executed.
In 2001, most players appear to be concerned with the strategies that will help fulfill an ultimate vision for the institution—be it to broaden the institution’s business lines, to fill in a market footprint, or to bulk up to a particular asset size. Acquisitions for acquisitions’ sake have gone by the wayside.
We have filled this special Bank Director supplement with information and opinions from the leading deal makers, investment bankers, and attorneys in bank mergers and acquisitions to help your board understand the landscape and the opportunities that exist today. It features three individual interviews with large-institution experts who discuss nonbank acquisitions, global competition, and U.S. merger activity followed by two roundtable discussions on regional and community bank M&A issues. Finally, a comprehensive table featuring the top deals consummated in 2000, including pricing and advisers, is included.
We hope this special supplement is helpful to you and your board in the coming year as you decide how to increase the value of your bank and remain a thriving, profitable institution. There are many uncertainties surrounding the market this year, but only one thing is certain—the end of the game isn’t yet in sight.
2001 - M & A Supplement
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