Assisting in Mergers of Equals

Sheshunoff & Co. Investment Banking can assist you when you are considering a bank merger with an institution of like size. In today’s economy, many institutions are determining that a merger of equals (MOE) will present the newly-formed company with benefits that generally outweigh the disadvantages. Whether it’s economies of scale, an enhanced capital position, enhanced liquidity, expanding your geographic reach, or all of the above, our community bank merger services can help the two merging companies work toward these objectives.

We have experience working with both parties in a bank MOE until the initial agreement was reached. Having one advisor working with both parties can eliminate miscommunication in the early stages, avoid any tension between advisors, and allow the mergers of banks to proceed.

Mergers of Banks Equal Two Cultures

Our consultants have acted as trusted advisors to numerous parties by providing community bank merger services that recognize the highly confidential nature of the trust imparted to them. We also know that the “social” issues that arise when merging two cultures can have an undue influence on the bank merger process. These issues can become a significant detriment to success if they are not managed well at the outset.

Sheshunoff & Co. Investment Banking’s experienced advisors are sensitive to this often highly-charged environment. We can help you address: management structure and reporting responsibilities; board composition; whether a new company will be formed for the two to merge into or one company will be the survivor; the name of the company; and the location of headquarters.

The Determination Process: Evaluating the Bank Merger Candidates

Through our community bank merger services, we would:

  • Value each company on a stand-alone basis
  • Evaluate contribution to the combined entity of key balance sheet and income statement value determinants
  • Evaluate each company’s franchise
  • Assist in on-site due diligence
  • Set proposed initial exchange rate
  • Value combined company with synergies and enhancements

The Transaction Stage

Is it worth the pursuit? Are both companies reasonably interested? Sheshunoff & Co. Investment Banking’s experienced advisors are on hand to help facilitate answers to these questions and to help both parties proceed forward. We believe that the right parties, coupled with the right advisor, can make an intricate proposition work. With your trust in our community bank merger services and the utmost discretion on our part, we are committed to helping interested parties be successful.