Five Practical Tips For Bank Acquirors

As the fog of the recent economic recession continues to lift, many community banks that have weathered the storm are shifting from a defensive-minded strategy to an offensive one, which in many cases focuses on the acquisition of another institution. In the last edition of Banking Notes, we looked at five practical tips that institutions considering the possibility of partnering with a like-sized institution or an outright sale to a larger institution should consider. In this edition, we will explore five practical considerations for the would-be acquiror.  

1.  Educate your board of directors on the M&A process now.  

The boards of directors of a majority of community banks are comprised of local community leaders, many (if not most) of whom have little, if any, experience with the mergers and acquisitions (M&A) process. For this reason, it is imperative that an acquiror educates its board on the M&A process prior to exploring potential acquisition opportunities.