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Bank Director Magazine - 2004 - M&A Supplement
Bank Mergers & Acquisitions: Window of Opportunity
What a difference a year makes. In early 2003, most industry experts held back with guarded optimism as they prognosticated on the financial services M&A environment, although there was foreshadowing of the pickup we find ourselves in today.
The roundtable discussions featured in this special supplement, which took place during Bank Director’s recent Acquire or Be Acquired annual conference, highlight many of the issues shaping the banking M&A market. The investment bankers and attorneys who gathered to discuss trends in the industry seemed to agree that the elements are in place to signal the beginning of a new, active cycle. Deals are picking up, opportunistic sellers are emerging, stocks are at an all-time high, and overall trends are very positive in the M&A arena. Although there is increased scrutiny on corporate governance, as the dust settles around Sarbanes-Oxley, most agree that it has done little to impact M&A culture. Directors who wield strategic deals and follow thorough with stringent due diligence will continue to reap the rewards of successful M&A transactions.
Recent large-deal announcements, such as J.P. Morgan Chase/Bank One and BofA/FleetBoston have created a ripple effect in the large-cap arena, making M&A front-page news and bringing it to the forefront in the minds of bank directors and management. And community banks continue to have an impressive track record.
Despite this idealistic environment, risk still pervades at the deal table. Banks that want to grow must take some risk. But for some, internal growth is still the right strategy. Either way, strategic planning is critical as banks set their sights on potential targets.
We hope the insights shared in this supplement provide a clear view of the opportunities that lie ahead for bank executives and directors.
2004 - M&A Supplement
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