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How to Buy a Bank	 Step by Step Project Management of community banking M&A Provided by www.OwnABank.com
Overview Process Overview Identifying Stakeholders and Partners What to buy – Creating Requirements Documentation Due Diligence – Managing Risks Pricing and Valuations Factors – Bid Management Definitive Agreement considerations - Contracts Funding – Financial Management Regulatory Approval – Outside Risks Provided by www.OwnABank.com
Stakeholders and Business Partners Identification of key stakeholders Identification of key business partners Legal Accounting Compliance Management and Strategy Consultants Marketing, Branding and Messaging Consultants Provided by www.OwnABank.com
What to buy Identifying Targets Create a comprehensive requirements document Defining business needs Why size matters in banking M&A Understanding different Charter types Sources of information FDIC lists Bank and Business Brokers Relationships Provided by www.OwnABank.com
Conduct Due Diligence Creating comprehensive DD checklists Financials Compliance Systems, Processes and Personnel Understanding FDIC CALL/TFR reports Bank Financials – Balance Sheets, Income Statements, Loan Concentrations etc. CAMELS rating system Peer Group reviews Commonly neglected items Provided by www.OwnABank.com
Community Bank Valuations Understanding factors that impact bank valuations Franchise or Brand Value Growth rates Branch Network Lines of Business Operating leverage Understanding Multiples Provided by www.OwnABank.com
Definitive Agreements Seeking Legal Help What is a definitive agreement? Components of a typical DA? Keeping the Regulators in sight Managing Risk prior to Closing Provided by www.OwnABank.com
Regulatory Approvals Understanding the current regulatory landscape Creating Change of Control Applications New bank director considerations Automatic disqualifiers Biographical and financial data Business Plan changes Provided by www.OwnABank.com

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How to buy a community bank

  • 1. How to Buy a Bank Step by Step Project Management of community banking M&A Provided by www.OwnABank.com
  • 2. Overview Process Overview Identifying Stakeholders and Partners What to buy – Creating Requirements Documentation Due Diligence – Managing Risks Pricing and Valuations Factors – Bid Management Definitive Agreement considerations - Contracts Funding – Financial Management Regulatory Approval – Outside Risks Provided by www.OwnABank.com
  • 3. Stakeholders and Business Partners Identification of key stakeholders Identification of key business partners Legal Accounting Compliance Management and Strategy Consultants Marketing, Branding and Messaging Consultants Provided by www.OwnABank.com
  • 4. What to buy Identifying Targets Create a comprehensive requirements document Defining business needs Why size matters in banking M&A Understanding different Charter types Sources of information FDIC lists Bank and Business Brokers Relationships Provided by www.OwnABank.com
  • 5. Conduct Due Diligence Creating comprehensive DD checklists Financials Compliance Systems, Processes and Personnel Understanding FDIC CALL/TFR reports Bank Financials – Balance Sheets, Income Statements, Loan Concentrations etc. CAMELS rating system Peer Group reviews Commonly neglected items Provided by www.OwnABank.com
  • 6. Community Bank Valuations Understanding factors that impact bank valuations Franchise or Brand Value Growth rates Branch Network Lines of Business Operating leverage Understanding Multiples Provided by www.OwnABank.com
  • 7. Definitive Agreements Seeking Legal Help What is a definitive agreement? Components of a typical DA? Keeping the Regulators in sight Managing Risk prior to Closing Provided by www.OwnABank.com
  • 8. Regulatory Approvals Understanding the current regulatory landscape Creating Change of Control Applications New bank director considerations Automatic disqualifiers Biographical and financial data Business Plan changes Provided by www.OwnABank.com