A company based on Louisiana recently completed the acquisition of the holding company for a Louisiana-based bank. The total acquisition price was $74.5 million. The combined company will have assets totaling approximately $1.5 billion; loans totaling approximately $1.2 billion; and deposits totaling approximately $1.2 billion as well. The acquiring company is the parent company of branch banks and plans to convert the acquired branch banks and their operating systems to branch banks of the parent company by the New Year. Shareholders of the acquired company will receive nearly $25 cash per share.
The opportunity to acquire or merge with a business is a growth opportunity for many companies. Growth opportunities and expansion opportunities, however, can come with challenges in addition to the benefits they provide. From the decision to acquire another business or merge with another business to necessary due diligence, negotiations, contract formation and execution, financing, warranties and closings, there are a number of important steps in the process making it helpful for the parties to have appropriate guidance and advance knowledge of the process.
In addition, there can be a number of parties and interests to take into account, including shareholder interests and parties that may have differing views and opinions of the acquisition or merger. It is important to be aware of the legal requirements, obligations and implications when approaching a significant real estate or financial transaction such as acquiring a new business or merging with a business.
Acquiring a new business or merging with an existing business is a big step for any company. Knowing how to effectively navigate the process, including preventing potential problems and handling challenges along the way, is important for any company embarking on a merger or acquisition.
Source: The Advocate, “Home Bancorp completes $74.5 million deal for Bank of New Orleans,” Ted Griggs, Sept. 16, 2015