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Louisiana bank bases growth strategy on acquisitions


Growth opportunities can be exciting, yet also complex at times, which is why understanding the process of buying a company can be important. A bank that began in Baton Rouge recently went public; the initial public offering grossed $46 million and included the issuance of 3.3 million shares. The bank began as a single branch and now has 11 locations in southern Louisiana; the company plans to open two more branches over the next two years. The corporate strategy that the company is employing moving forward is to grow in existing markets, but also to grow through the acquisition of small banks.

The company plans to grow through the acquisitions of small banks in southern Louisiana, which are considered to be banks with fewer than $500 million in assets. The CEO for the company noted that this includes 80 percent of banks in Louisiana. In fact, 116 financial institutions in Louisiana qualify as holding fewer than $500 million in assets. According to one expert, there are good acquisition targets among the smaller Louisiana banks. Acquisitions are generally regarded as a positive growth strategy, even with certain factors driving up the price of Louisiana banks.

Growing a business through acquisitions can require many important considerations and business transactions. Most businesses will view the time period as one of excitement at multiple growth opportunities. It also is important during the period of time in which the company is engaged in acquiring a new business, or businesses, to avoid potential business litigation. By ensuring that each phase of the acquisitions process is competently performed, the company may be in a better position to avoid possible business litigation associated with the transaction and down the road.

Sometimes business litigation, however, is an unavoidable reality. Whether a company is currently facing litigation related to business transactions or is concerned about the same in the future, knowledge and understanding of how to approach either situation can be an important benefit to a growing company.

Source: The Advocate, "Investar looks beyond its IPO," Ted Griggs, Aug. 17, 2014

Source: The Advocate, "Investar looks beyond its IPO," Ted Griggs, Aug. 17, 2014

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