CHICAGO (December 6, 2018) – A flash poll conducted by Baker Tilly Virchow Krause, LLP (Baker Tilly) indicates nearly 50 percent of depository and lending institutions are actively assessing merger and acquisition (M&A) options.
“Throughout the first nine months of 2018, the number of completed or announced banking merger transactions has grown to approximately 300,” Timothy Kosiek, CPA, Baker Tilly partner and firm leader of the depository and lending practice, said. “Because smaller institutions are typically more challenged to achieve earnings performance goals and maintain compliance with regulatory requirements at a cost relative to their larger counterparts, the majority of these transactions have resulted in the acquisition of institutions that have less than $1 billion in assets.”
“There are a number of key quantitative factors about the financial condition and operating results of banking institutions that are relevant to determining the manner in which a bank is most likely to participate in the continuing wave of consolidation,” Christopher Groven, CPA, manager in Baker Tilly’s financial services practice group, said. “By more fully understanding an institution’s key performance indicators (KPIs), management is likely to be equipped to rely upon key strengths or critical deficiencies compared to other community banking institutions in deciding if they are well-positioned as a buyer, can achieve desired shareholder value as a seller or if they should stay the course.”
Baker Tilly recently held an educational webinar, Benchmarking for M&A success: Where does shareholder value reside and how can you maximize its benefits?, to assist depository and lending industry professionals understand the importance of KPIs and industry trends that are critically important to navigating successful M&As.
The webinar presenters discussed:
A recording of the webinar is available at bakertilly.com/insights/benchmarking-for-ma-success-where-does-shareholder-value-reside-and-how-can.
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