Magazine : Archives : 1st Quarter 2015

Five Questions That Directors Should Ask About Proposed Acquisitions

You no doubt are aware that consolidation is on the rise in the banking industry. You probably have already been assessing your strategic options as a member of a bank’s board. But what you don’t want is to be on that board that made a phenomenally bad decision where a purchase or sale is concerned. The following are some suggested questions to ask management about a proposed acquisition. 1. What impact does this deal have on shareholders? This is a no brainer as a first question. But it’s the overarching question that includes many more to follow: Is the deal...