- Arts
- Unique Gift for ANYONE for ANY OCCASION
- Oscar, Award or Movie Themed Party Planning
- Our Mission
- BetterBizList Advice
- 2009 Small Business Survey Shows Surprising Optimism
- Get the Most out of your Business Listing on BetterBizList.com
- Business
- Getting Referrals
- Busy Moms...can work from home and HAVE IT ALL!!
- 2009 Small Business Survey Shows Surprising Optimism
- Food
- Can Blueberries Help Improve your Memory?
- Two Bergen County Businesses Join Forces to Offer Gift-Wrapped Memories
- GIFT GIVING PROGRAM SUPPORTS NATIONAL CENTER FOR MISSING & EXPLOITED CHILDREN
- Health
- Strong Lower Backs: Having One That Works
- New Kid on the Block
- Can Blueberries Help Improve your Memory?
- House and Home
- NON PROFIT GENERAL CONTRACTOR " The Best Home Remodeling Deal in Philly"
- It's Time for Spring Cleaning. Turn Your Trash Into Cash!
- Smart Credit Moves: Foreclosure, Bankruptcy Affect Credit Score Differently
- Investments
- Steps to Buying a Bank
- Is it Possible to get Higher Rates from Online Banks?
- Smith Mountain Lake, Virginia
- Leisure
- Willowbrook Park
- Clove Lakes Park
- Prestige Fragrance made from DNA makes Trendwatching.com list for Status Story Brands
- Miscellaneous
- Important Information Every Consumer Should Know
- Making Sense of Affiliate Marketing
- DON'T BE TAKEN
- Opinions
- Working From Home
- Making Sense of Affiliate Marketing
- Surplus equipment and the companies that buy IT Liquidation Equipment
- Real Estate
- Selling your home-More on First impressions
- Some Guidelines For Buying a Home
- Would you buy your own house?
Steps to Buying a Bank
08/15/2008 - By Robin Trehan Steps to Buying a Bank
Steps to Buying a Bank
By Robin Trehan, B.A, MIB, MBA electronic business
According to Sun Tzu, The art of war- Every battle is won before it is ever fought. Same goes for while buying a bank or financial institution. A deal can have a hidden value and how one breaks the value and brings in the value is up to the buyer to realize. Here are series of steps I will suggest once one has identified a bank and it fits the initial criteria.
1. Putting an offer sheet with basic terms and conditions for the due diligence.
2. If the offer is accepted hiring a good law firm and accounting firm for the preparation of
1. Definitive Agreement.
2. Doing due diligence.
3. During the due diligence process, following questions should be put in picture.
A copy of audited financial statements for the past three years.
Does the bank own or lease the space that it occupies? If it leases the space, what is the remaining term?
Regarding the loan on the book, provide a breakdown by type, rates, and maturity.
The investment the bank owns. The breakdown by type, rates, and maturity.
The deposit on the book. The breakdown by type, rates, and maturity.
A brief description of the customers.
Who is the present management and how the bank board is organized.
A list of shareholders.
Analysis of CAMELS- Capital, Asset quality, Management, Earning, Liquidity and sensitivity to market risk.
4. After the acceptance of the Definitive Agreement buyer places money in escrow.
5. Buyers seek regulatory approval within 5-10 days after the execution of the Definitive Agreement.
6. Seller seeks its shareholders approval to the transaction as soon as the Definitive Agreement is executed and the deposit of funds is received.
7. Buyer has to in the mean time get the regulatory approval.
8. Closing take place and if possible making sure that present management stays there for two to three months. Best deals are sometimes derived and made. Stick to the fundamentals, good things sometimes takes time, and lots of hard work.
Robin Trehan is an M&A Expert. He can be reached at rtrehan@creditcapitalfunding.com
Advertisers
