The right acquisition can be a great growth opportunity for any business. A banking acquisition deal will bring changes to the Baton Rouge area. Business First Bank, based in Baton Rouge, has reached a deal to acquire another bank in Louisiana. The $51 million deal will make Business First Bank the fourth largest bank among those headquartered in Louisiana.
The acquisition deal that was reached includes both cash and shares. The deal, expected to close in the fourth quarter, is subject to shareholder approval. If the acquisition deal is approved, it will leave Business First Bank with $2 billion in assets. Business First Bank recently closed another $76 million acquisition earlier this year. The bank also went public earlier this year.
Business First Bank now has 19 offices across two states, including Louisiana. As of earlier this spring, the bank reported $305 million in assets and $788,000 in net quarterly income. A representative for the bank noted that the acquisition expands its presence along the I-20 corridor and provides diversification. When acquiring a company, it is important that it be a good and complimentary fit. It is should also align with business goals for the business. It is also important to conduct all necessary due diligence.
There is little doubt the acquisition process can be complex and challenging which is why it is essential for to understand the process and how to conduct it. Navigating the acquisition process effectively can be rewarding for the business and understanding the legal implications can help ensure its success and better position the acquiring company for success in the future.