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Bank Director Magazine - 2003 - M&A Supplement
Bank Mergers & Acquisitions: The Road Ahead
It’s a tenuous time for bank consolidation. Strong, positive fundamentals are still present that afford expansion and financial opportunities in the banking industry, yet experts say there may be sound reasons to maintain a conservative approach for the near term.
The series of roundtable discussions highlighted in this supplement, held during Bank Director’s recent Acquire or Be Acquired conference, sheds light on many of the questions swirling around today’s M&A market. Again and again, “caution” was reiterated as the watchword for this year among our cadre of investment bankers and attorneys. The uncertainty over the interest rate environment, the volatility of the stock market due to geopolitical events, and the weaknesses arising in local economies are all factors that will affect bank consolidation in 2003. Moreover, in the wake of Sarbanes-Oxley, all eyes are fixed on the board’s responsibilities, requiring bank management and directors to take the utmost care and due diligence when analyzing the financial implications and cultural aspects of any deal.
Even so, there is a world of opportunity awaiting banks today. The advent of trust-preferred securities has opened the door for many smaller institutions to raise the capital necessary to burgeon their franchises and obtain critical mass through acquisitions. On the regulatory side, the finality of the transition to purchase accounting has created new avenues for flexibility in deal structure. Furthermore, the time is ripe for expansion into nonbanking arenas such as insurance—a road that has already been paved with the success stories of many institutions. Last, the fact remains that the executives and directors in banking institutions today are probably among the strongest and best-equipped individuals this industry has ever experienced.
Though the road ahead may be fraught with curves, it is still a time of optimism for the long term. In this supplement, we have gathered together some of the best and brightest individuals in bank M&A to help executives and directors in determining and maintaining their M&A strategy and direction for 2003 and beyond.
2003 - M&A Supplement
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