Acquisitions and mergers are often important growth opportunities for businesses. An out-of-state bank is acquiring banks in Louisiana and Florida. The total cost of acquiring all the banks in both states is $33 million. The acquisition will give the parent company $1.6 billion in assets in four states, including Louisiana.
The CEO of the bank that is acquiring the others noted that the expansion will allow them to provide additional locations, products, services and capacity to provide better service to existing customers. He also stated that Baton Rouge is an attractive market for growth. The acquiring company will pay $31.1 million to purchase the bank in Baton Rouge, including 10 branch banks in Baton Rouge. The bank being acquired in Baton Rouge has $259 million in assets. Both acquisitions are expected to be completed at the beginning of 2017 and are expected to produce profits in 2018.
Acquisitions and mergers are a big step for any business and growing company. There can be a lot to know and consider when contemplating such a big step, which is why it is important to have complete knowledge, a strong understanding and thorough guidance when conducting an acquisition or merger. Acquisitions and mergers can allow a company to offer better and more complete services or products to new and existing customers.
The success of any company is important to many people, including owners, shareholders, if applicable, and those that rely on it for jobs and even the services or products it provides. As a result, it is important to understand the financial, legal and overall implications of an acquisition during all phases of the process including due diligence, negotiation and execution.
Source: Miami Herald, “Mississippi bank to pay $33M for banks in Louisiana, Florida,” Oct. 14, 2016