Nearly Half of Banking Institutions Actively Assessing M&A

CHICAGO (December 6, 2018) – A flash poll conducted by Baker Tilly Virchow Krause, LLP (Baker Tilly) indicates nearly 50 percent of depository and lending institutions are actively assessing merger and acquisition (M&A) options.

“Throughout the first nine months of 2018, the number of completed or announced banking merger transactions has grown to approximately 300,” Timothy Kosiek, CPA, Baker Tilly partner and firm leader of the depository and lending practice, said. “Because smaller institutions are typically more challenged to achieve earnings performance goals and maintain compliance with regulatory requirements at a cost relative to their larger counterparts, the majority of these transactions have resulted in the acquisition of institutions that have less than $1 billion in assets.”

“There are a number of key quantitative factors about the financial condition and operating results of banking institutions that are relevant to determining the manner in which a bank is most likely to participate in the continuing wave of consolidation,” Christopher Groven, CPA, manager in Baker Tilly’s financial services practice group, said. “By more fully understanding an institution’s key performance indicators (KPIs), management is likely to be equipped to rely upon key strengths or critical deficiencies compared to other community banking institutions in deciding if they are well-positioned as a buyer, can achieve desired shareholder value as a seller or if they should stay the course.”

Baker Tilly recently held an educational webinar, Benchmarking for M&A success: Where does shareholder value reside and how can you maximize its benefits?, to assist depository and lending industry professionals understand the importance of KPIs and industry trends that are critically important to navigating successful M&As.

The webinar presenters discussed:

  • The importance of specific banking industry KPIs
  • Trends within depository and lending institutions
  • How metrics can influence M&A strategies

A recording of the webinar is available at bakertilly.com/insights/benchmarking-for-ma-success-where-does-shareholder-value-reside-and-how-can/.

About Baker Tilly Virchow Krause, LLP (bakertilly.com)

Baker Tilly Virchow Krause, LLP (Baker Tilly) is a leading advisory, tax and assurance firm whose specialized professionals guide clients through an ever-changing business world, helping them win now and anticipate tomorrow. Headquartered in Chicago, Baker Tilly, and its affiliated entities, have operations in North America, South America, Europe, Asia and Australia. Baker Tilly is an independent member of Baker Tilly International, a worldwide network of independent accounting and business advisory firms in 147 territories, with 33,600 professionals. The combined worldwide revenue of independent member firms is $3.4 billion. Visit bakertilly.com or join the conversation on LinkedInFacebook and Twitter.