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Indications of a smooth merger for two Louisiana banks MidSouth to acquire The Peoples State Bank

When two companies share similar outlooks in their approach to running a business, the mergers and acquisitions process can become easier. Since one of the most fundamental issues in a merger is attempting to mesh the two sets of cultures and employees in a way that is conducive to success, when the two already share similar outlooks on their business this process can become more intuitive and be more quickly resolved. Instead of needing extensive business litigation to work through issues, these problems can sometimes be sidestepped altogether.

This may be the case in a merger between two Louisiana area banks. The two banking companies, MidSouth and The Peoples State Bank (PSB), have recently signed the agreements needed to merge. All the requirements have been met, and they are on track to successfully merge by the fourth quarter of 2012. PSB shareholders are set to receive $16 million in the merger, along with shares of MidSouth.

As previously mentioned, merging employees and owners can often be a difficult task, especially when considering upper management positions. Determining who will take over what tasks in the new organization can be daunting. However, MidSouth and PSB have agreed the chairman and president of PSB will become a member of MidSouth's Board of Directors, and PSB CEO will be taking the position of senior vice-president and regional president of MidSouth Bank's Timber Region.

The logic behind the merger is that the two organizations will be better capable of serving their respective locations, while also expanding the ability of both organizations to grow.

Other businesses may be to also see the benefit in merging with another company to increase their ability to reach new customers or expand their own resources. However, any business considering merging with another company needs to consider the complexity of such a move. This will likely require consulting with attorneys that are well versed in business litigation. While having similar cultures and business philosophies certainly helps any merger, working out the details remains a nuanced process.

Source: The Advertiser, "MidSouth acquisition of PSB 'a pure merger,'" Sept. 27, 2012

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