Paths to Success: Examining M&A Growth Strategies

Growth-seeking boards are in the enviable position of having plenty of options from which to choose today. Capital is abundant, economic metrics are favorable, and, despite two decades of steady consolidation, many regional and demographic pockets offer untapped potential for expansion.

Bank Director recently hosted three roundtable sessions during its 2005 Acquire or Be Acquired Conference in Phoenix in which the nation’s premier investment banking, accounting, and legal advisers articulated the unique dynamics surrounding the current bank M&A market. These sessions, sponsored by Ernst & Young, covered the most critical issues bank boards face in determining a path to successful growth. Panel members discussed such topics as valuations and the commercial banking market, legal and ethical standards resulting from corporate governance reform, and how directors should evaluate the multitude of strategic options available today.

In bringing you the contents of these discussion groups, Bank Director and Ernst & Young seek to enlighten directors on some of the most important factors affecting your bank’s success in 2005 and beyond. We believe the information herein is equally germane whether you are a buyer, a seller, or plan to remain independent. Having an understanding of equity and capital markets, legal and accounting rules related to the Sarbanes-Oxley Act, and the opportunities available to cultivate sources for earnings are universal needs among bank boards. Moreover, our panelists agree that underlying all these issues is the need to understand and periodically review your strategic plan—to ensure the path on which you embark leads in the direction you want to go.

Bank Director and Ernst & Young are pleased to bring you the 2005 M&A supplement, Paths to Success: Examining M&A Growth Strategies, and hope it provides a useful educational tool for you and your institution’s board of directors.

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