The completion of a due diligence process is a critical part of every professional business transaction and this is especially true when it comes to mergers and acquisitions in community banking. The industry has had a long history of this practice, as it is one of the most efficient strategies to growing a community bank’s foot print in a particular community or within the broader region of a marketplace. In addition, if a bank is interested in entering into a new product market, it can often make sense for the institution to acquire another community bank that already has an existing presence in a given business space.
The highly experienced partners at Artisan Advisors are uniquely qualified to conduct both merger and acquisition due diligence evaluations. Having held many positions in community banks over the years, including the roles of president and board member, our partners have an unmatched perspective that allows us to conduct the most comprehensive and highest quality acquisition due diligence assessments in the industry.
Over the years, Artisan Advisors has represented community banks on both sides of the merger and acquisition process. While some of the fundamental goals of an acquisition due diligence evaluation are similar for both parties, there are inherent differences within these tasks, depending on whether a given community bank is the buyer or seller.
Community Bank Sellers
Develop the community bank’s value proposition, by creating a narrative about the institution’s role in the marketplace, the products it offers, the benefits it brings to the community and the tangible advantages an acquisition would bring to a purchaser.
Evaluate an institution’s strengths and weaknesses, including operational efficiencies, as well as create a strategy to improve upon specific areas of concern. Develop a plan to find cost savings, which can be an attractive benefit to any purchaser.
Conduct a loan review, an overall financial analysis and determine if any regulatory or compliance issues exist.
Perform an acquisition due diligence evaluation on any potential buyers, including financial standing, reputation in the marketplace and overall fit for a merger.
Complete any additional, related consultative tasks per client’s request.
Fair Lending Risk & Review
Community Bank Purchasers
A comprehensive valuation of a community bank to be purchased.
An assessment of the seller’s products and competitive advantages that an acquisition would bring to a purchaser.
Evaluate the purchase price versus return on investment potential the expected time horizon needed.
Complete a loan portfolio review of seller, an overall financial analysis and an audit to detect any compliance or regulatory issues.
Provide any needed consultative work for not only the community bank purchaser, but also any potential investment partners.
As it relates to acquisition due diligence services for both community bank sellers and buyers, you can rely on the decades of knowledge and experience that the partners at Artisan Advisors can provide to our clients. We know the community banking business, having served at the very top levels of executive management. Contact us today to learn more about how Artisan Advisors can put our many years of experience to work for you.
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